(VitalNews.org) – For the European Union to curb imports of EVs from China, they’ll need to raise import tariffs by 55%. The European Union has been steadily looking into China’s electric vehicles and has shown interest in avoiding the import of these vehicles into their country.
The EU originally expected to raise the tariffs by fifteen to thirty percent, but Rhodium Group said that these numbers were unlikely to make a difference.
The report, by Rhodium Group, said: “Even if the duties come in at the higher end of this range, some China-based producers will still be able to generate comfortable profit margins on the cars they export to Europe because of the substantial cost advantages they enjoy.”
The competition comes in when you look into China’s BYD electric vehicle brand which topped Tesla and can be sold at a much higher cost for profit.
The report also stated that even with a thirty percent tariff, China will still make a bigger profit in the EU than in its home country. It said that China will likely need to cut its prices to expand more into the EU.
“Much steeper duties of around 45%, or even 55% for fiercely competitive producers like BYD, would probably be necessary to render exports to the European market unappealing on commercial grounds,” the report said.
The European Commission launched a probe into Chinese RVs after officials said that these vehicles could threaten EU producers. The United States has also put high tariffs on China’s EVs which makes the pressure to expand into the EU market even more significant.
China has responded to the investigation by calling it “blatant protectionism” and said that its companies are “simply more competitive.” than those in the West.
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