The European Union Commission has reportedly postponed its decision on whether to implement new tariffs on Chinese-manufactured electric vehicles (EVs) imported to the EU.
According to Reuters, the decision has been delayed until after the European Parliament elections on June 9th. The delay is reportedly due to a technical issue, though some sources suggest it is to keep the tariff issue separate from the election.
BYD Seagull EV
If enacted, the new tariffs could cost Chinese EV producers billions of dollars. The European Commission is currently conducting an anti-subsidy investigation into three major Chinese EV manufacturers: BYD, SAIC, and Geely. The investigation was launched in October and may last as long as 13 months.
The EU’s postponement contrasts sharply with the approach taken by the U.S. As GM Authority covered earlier in May, the Biden administration has announced a 100 percent tariff on Chinese-made EVs, up from the previous 25 percent. While General Motors (GM) does not currently import Chinese-made EVs to the U.S., it manufactures several all-electric models in China through its joint venture with SAIC. These models include the Buick Electra E4 and E5, as well as Chinese-spec variants of the Cadillac Lyriq and Optiq.
The Biden administration’s decision is part of a broader strategy to bolster domestic manufacturing in key sectors like semiconductors, batteries, and EVs. This approach aligns with legislative efforts such as the Bipartisan Infrastructure Law and the Chips and Science Act, aiming to counteract what are perceived as unfair competitive pressures from Chinese industrial policies.
Further, the Biden administration has also increased tariffs on other Chinese-manufactured goods. For example, tariffs on Chinese-made semiconductors will rise from 25 percent to 50 percent by 2025, while tariffs on critical minerals and lithium-ion batteries for EVs will also see significant hikes over the next few years.
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Comments
Ugly little beast.
It may be ugly but it is the most sold EV in the world. This is why the U.S. and Europe are afraid of it.
The Tesla Model Y is the most sold EV model worldwide.
I think it’s the most sold EV brand in the world. BYD made 3 million vehicles last year and they are set to expand significantly, but the best figures I can find is 300,000ish sales for the Seagull. I am sure that’s set to expand this year and the next, so we will see how that works out.
This particular model wouldn’t sell well in the US. Regardless of it being EV or cheap. Mitsubishi sells the cheap Mirage in the US and it has abysmal sales. Same with Yugo at one point and I remember them pushing “why buy used when you can buy new.” And lets not get into cars like the Honda Fit and Toyota Yaris. Americans would rather buy a pre-owned larger car (like a Model Y) over a new one of these for the price. If any models of theirs would have any signs of success in the US (tariffs and geopolitics notwithstanding) it would be the compact Tang SUV. Of course, it remains to be seen how these vehicles hold up in longevity. I am still a firm believer of “you get what you pay for.”