EU Raises Tariffs on Chinese-Made Electric Vehicles Up to 45.3%

The European Union has decided to increase tariffs on Chinese-made electric vehicles by up to 45.3% at the conclusion of its highest-profile trade investigation. A little more than a year after launching its anti-subsidy investigation, the European Commission will set additional tariffs for Tesla (TSLA.O) starting at 7.8% and going up to 35.3% for the Chinese company SAIC, in addition to the standard 10% import tariff on cars in the EU. The additional tariffs were officially confirmed on Tuesday when published in the EU's Official Journal and will come into effect today. The Commission, which oversees EU trade policy, stated that these tariffs are necessary to counter what it claims are unfair subsidies, including preferential financing and grants, as well as land, battery, and raw materials priced below market value. It noted that China's spare production capacity for electric vehicles stands at 3 million units annually, which is double the size of the EU market.