(AmericanProsperity.com) – The European Union is expected to reveal the tariffs they’ve set for Chinese electric vehicles to block the country from importing their low-priced vehicles. As of now, the EU has a ten percent tariff on electric vehicles, but they are expected to raise that percentage with their new tariffs.
Citi analysts spoke out about what they could see the number rise to. They said that the tariff rate could be “hiked to 25% to 30% from 10% currently, while our risk scenario envisages a hike in the tariff rate to 30% to 50%.”
Anthony Sassine, senior investment strategist at KraneShares, said that the tariffs could be between ten and twenty percent but that he expects them to lean on the higher side.
The European Commission launched an investigation initially last year into subsidies given to electric vehicles in China where they revealed that the imports from China “posed an economic threat to the EU’s EV industry.”
“But the Chinese manufacturers are so efficient, are so ahead of the curve, that tariffs like this – I don’t think will impact too much the pricing here. They will still be more competitive than their EU counterparts,” said Sassine.
China’s electric vehicle industry has been very successful due to the support and incentives from the Chinese government. However, this has led to the country overproducing the vehicles, which is a concern to other countries. The United States and Europe are both concerned that China will be able to import their cars and sell them for less, pushing out the U.S.- and Europe-owned EV companies.
U.S. Energy Secretary Jennifer Granholm warned early this year that China could flood the U.S. electric vehicle market and Joe Biden has addressed similar concerns. The United States has since raised their tariffs for Chinese EVs to one hundred percent from twenty five percent, and other countries are following suit.
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