EU to impose additional tax on Chinese electric vehicles

The European Union (EU) has announced that it will impose additional customs duties ranging from 17.4 percent to 38.1 percent on electric vehicles produced in China. The European Union (EU) will impose additional customs duties of up to 38.1 percent on electric vehicles shipped from China starting next month. The escalation of the global trade war will increase the cost of selling cars in Europe for companies from China’s BYD Co. to Tesla Inc. The Commission announced on Thursday that the duties will be 17.4 percent for BYD, 20 percent for Geely and 38.1 percent for SAIC. The EU officially notified automakers including BYD Co., Geely Automotive Holdings Ltd. and SAIC Motor Corp Ltd. of the additional tax arrangement that will be in effect as of July 4. China has signaled that it is ready to retaliate by threatening measures on agriculture, aviation and large motor vehicles. Meanwhile, Beijing has launched an investigation into certain European beverages.