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Not so simple: Europe differentiates tariffs for Chinese EVs

Seven months on from the launch of the European Commission's investigation into Chinese-made EVs and the results are in. By Ian Henry

In the US things are simple: a standard 2.5% on all light vehicle imports, plus (since the Trump administration) an additional 25% on Chinese vehicles, now raised to 100% for Chinese electric vehicles (EVs) under President Biden. Penal yes, but of limited application, given the small number of Chinese EVs, currently just a few Polestars, imported from China. Also there are no definite plans by Chinese brands to sell in the US, so the US tariff is arguably more of a political gesture than anything. By contrast in Europe, where Chinese brands are expected to take over 20% of the EV market this year, the European Commission launched a formal investigation into state subsidies for Chinese-made EVs. Seven months later and the results are in.

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