The European Commission (EC) announced on Tuesday that it will analyze the new tariffs the United States has decided to impose on imports of electric vehicles from China, as well as their possible impact on the European Union (EU) market.
European Commission trade spokesman Olof Gill said during a daily press conference that he would not comment on the application of these tariffs by the United States, nor on the conclusions reached by North American authorities in this regard.
US President Joe Biden announced on Tuesday new tariffs worth $18 billion (€16.6 billion at current rates) on imported products from China, with electric vehicles being the most punished, with taxes starting at 25%. up to 100%.
The new tariffs affect industries the White House calls “vital to the economic future and national security of the United States,” such as steel, aluminum, semiconductors, electric vehicles, batteries, solar panels, ship unloading cranes and medical products.
In October, the EC officially launched an investigation into anti-subsidization of electric vehicle imports from China.
The investigation aims to determine whether the value chains of these vehicles in China benefit from illegal subsidies and whether they are causing or threatening to cause economic harm to EV manufacturers in the EU.
Based on the findings of the investigation, the EU will determine whether to mitigate the effects of unfair trade practices identified by imposing anti-subsidy duties on imports of electric vehicles from China.
The EU representative further made it clear that the tariffs imposed by the US are on its own initiative, while “everything the EU does is done for and for the EU.”
Gill, however, noted that European authorities are raising the issue of Chinese electric vehicles with North Americans, as well as other related issues.
The official stressed that the tariffs announced in Washington are a response to US concerns about excess capacity and other unfair trade practices.
“The EU shares these concerns and we are addressing them using our own tools and in accordance with the rules of the World Trade Organization,” he explained.
Olof Khil also recalled that at a meeting in Paris on May 6, EU President Ursula von der Leyen called on Chinese President Xi Jinping to address the imbalances and policies underlying this excess capacity.
Italian Economy Minister Giancarlo Giorgetti also said today that the EU needs to protect itself from competition from outside countries, answering the question of whether Europe should follow the North American path and impose tariffs on China.
“Competition within the European market is good, but we must protect ourselves from competition from those outside the European market. We cannot limit ourselves to economic purism and free trade theory,” he stressed in an interview at a newspaper event. “La Verita”.
The minister assured that “a war of tariffs and protectionism is beginning, and geopolitical competition is hidden behind this economic war.”
According to the EU, Chinese cars have an 8% share of the EU market (which could double to 15% in 2025 if the same trend continues) and cost 20% less than European ones.
The Community investigation into Chinese imports will be completed within a maximum of 13 months from its commencement and, if legally justified, temporary anti-subsidy duties may be imposed within a period of nine months from its commencement.
Final action may be taken after four months or within 13 months of the start of the investigation.
Author: Lusa
Source: CM Jornal
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