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EU tariffs are changing automotive production geography

Higher tariffs on Chinese EVs have prompted some OEMs to accelerate their investment plans in Europe, writes Ian Henry

In June, the European Commission (EC) announced provisional additional tariffs of 17.4%-37.6% on Chinese electric vehicles (EVs) on top of the standard 10% import tariff. These came into temporary effect in early July and will be made permanent in November for a period of five years, unless there is a major breakthrough in talks between the EC and the Chinese authorities.

The Chinese authorities and automotive industry body (CAAM) have, unsurprisingly, objected and complained about unfair treatment, but as yet there has been no formal response from China. This may come, with enhanced tariffs on imports from Europe of large engine vehicles (there are very few EVs exported from Europe to China) or on non-automotive products.

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