Consumers in Europe will face higher prices for electric vehicles made in China after additional tariffs came into force. Tariffs ranging from 7.8% on Tesla to 35.3% on Chinese electric cars are intended to protect Europe’s auto sector, but they could escalate a trade war with China. Chinese automakers have called the additional tariffs “protectionist” and “arbitrary.”
“China does not accept the decision. “Beijing hopes to find a mutually acceptable solution as soon as possible to avoid trade escalation,” China’s Ministry of Commerce said in a statement. They are expected to apply for five years, in addition to the European Union’s standard 10 percent tax on car imports. The European Commission has said the tariffs are being sought to counter what it says are unfair subsidies. The trade measures come despite fierce opposition from Germany, which has raised concerns that retaliatory actions could hurt its industries.
European automakers are facing an influx of lower-cost electric vehicles from Chinese rivals. Tensions over Chinese exports have risen in recent months, as the United States and the EU have accused Beijing of propping up sectors, such as green technology, with massive state subsidies.