The increased EU tariffs on Chinese electric vehicles came into effect on October 31.

After months of investigation and negotiations with the Chinese side, the European Commission decided to impose tariffs on imported electric vehicles produced in China. This decision was made despite significant pressure from some major European car manufacturers who believe that "entering into a tariff war will be detrimental to their business and to their car sales in the Chinese market."

In its decision statement, the European Commission explained that the investigation found that Chinese manufacturers have an advantage over European ones due to state subsidies. On top of the existing tariff rate of 10%, additional tariffs ranging from 7.8% to 35.3% are now being applied.

For vehicles from the American manufacturer Tesla produced in China, an additional tariff of 7.8% will be applied, while for Chinese manufacturers BYD, Geely, and SAIC, tariffs will be set at 17%, 18.8%, and 35.3%, respectively.

The additional 35.3% tariff will also apply to all other manufacturers in China who refused to cooperate with the investigation, while for companies that did cooperate, the rate will be 20.7%.

In its statement, the European Commission noted that it will "continue working with China to find alternative solutions compatible with World Trade Organization rules, and remains open to negotiating price commitments with individual exporters."

Interestingly, the final decision to impose additional tariffs was made only after, at the beginning of this month, the proposal failed to secure the necessary qualified majority, meaning the votes of at least 15 member states representing at least 65% of the EU population.

According to EU rules, if there is no qualified majority for or against a proposal, the EU executive body can independently make a binding decision. The EC’s investigation revealed that Chinese manufacturers enjoy numerous advantages, including "preferential financing, grants, land, batteries, and raw materials at below-market prices."