{"id":624068,"date":"2024-06-13T16:33:46","date_gmt":"2024-06-13T13:33:46","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-germany-hungary-oppose-the-eus-new-tariffs-on-chinese-evs\/"},"modified":"2024-06-13T16:33:46","modified_gmt":"2024-06-13T13:33:46","slug":"why-germany-hungary-oppose-the-eus-new-tariffs-on-chinese-evs","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-germany-hungary-oppose-the-eus-new-tariffs-on-chinese-evs\/","title":{"rendered":"#Why Germany, Hungary oppose the EU\u2019s new tariffs on Chinese EVs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36c44c7c618\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36c44c7c618\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/why-germany-hungary-oppose-the-eus-new-tariffs-on-chinese-evs\/#Bad_for_business\" >Bad for business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/why-germany-hungary-oppose-the-eus-new-tariffs-on-chinese-evs\/#Hungary_could_be_Chinas_route_into_the_EU\" >Hungary could be China\u2019s route into the EU\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/why-germany-hungary-oppose-the-eus-new-tariffs-on-chinese-evs\/#What_now\" >What now?\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<p><img decoding=\"async\" src=\"https:\/\/img-cdn.tnwcdn.com\/image?fit=796%2C417&amp;url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2024%2F06%2FBYD_EU-EV-tariffs.jpg&amp;signature=9302936b60555b6f787385bee7e607c2\" \/><\/p>\n<div id=\"article-main-content\">\n                            <span style=\"font-weight: 400;\">The European Union has hiked tariffs for EVs imported from China, drawing reproach from Beijing and some of its own member states, including Germany, Sweden, and Hungary.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The tough new tariffs range between 17.4% and 38.1%, on top of the existing import duty of 10%. If the EU enforces these provisional measures, Chinese EVs are set to become significantly more expensive in the bloc.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For Brussels, the tariffs are a bid to level the playing field and protect European carmakers from cheap Chinese imports. But some EU member states and automakers fear that the measures could do more harm than good.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bad_for_business\"><\/span><b>Bad for business<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">\u201cTariffs are just not the right way to solve this conflict,\u201d Simon Schutz of German auto trade association VDA, told<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/news.cgtn.com\/news\/2024-06-13\/VDA-German-industry-not-in-favor-of-EU-tariffs-on-Chinese-EVs-1uoCXGU2CXK\/p.html\"> <span style=\"font-weight: 400;\">CGTN<\/span><\/a><span style=\"font-weight: 400;\">. \u201cIt might spark a trade war, and that\u2019s in no one\u2019s interest \u2014 in trade wars there are only ever losers.\u201d\u00a0<\/span><\/p>\n<div class=\"inarticle-wrapper channel-cta\">\n<div class=\"ica-text\">\n<p class=\"ica-text__title\">TNW Conference, June 20-21 &#8211; 85% tickets SOLD OUT<\/p>\n<p>Cease all the networking opportunities: roundtables, masterclasses, tech tours, 1:1s&#8230; Last chance to book before we run out!<\/p>\n<\/div>\n<\/div>\n<p><span style=\"font-weight: 400;\">The new import taxes will also hit European car brands like VW, BMW, and Dacia. The automakers manufacture a large chunk of their EVs in the world\u2019s second largest economy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAny tariffs or policies could risk damaging trade with China which could negatively impact these European manufacturers,\u201d EV expert Dr James Edmondson from market intelligence firm IDTechEx, told TNW.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In response to the EU announcement, China\u2019s Ministry of Commerce has<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.icis.com\/explore\/resources\/news\/2024\/06\/13\/11008042\/insight-china-slams-eu-over-ev-tariffs-trade-war-brewing\/#:~:text=China's%20commerce%20ministry%20has%20urged,and%20interests%20of%20Chinese%20companies%E2%80%9D.\"> <span style=\"font-weight: 400;\">urged<\/span><\/a><span style=\"font-weight: 400;\"> the bloc to \u201cim<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely correct its wrong practices.\u201d The ministry warned that the measures risk hurting both Chinese and European consumers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The tariffs are the result of a months-long EU investigation into whether Chinese EV prices are artificially low as a result of inflated state subsidies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While European automakers are fretting about a potential trade war, Hungary is equally worried about how the tariffs will impact its cozy relationship with China.\u00a0\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Hungary_could_be_Chinas_route_into_the_EU\"><\/span><b>Hungary could be China\u2019s route into the EU\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Hungary has formed a strong alliance with China under the leadership of right-wing Prime Minister Viktor Orban.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2023, Hungary alone captured 44% of all Chinese <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/merics.org\/sites\/default\/files\/2024-06\/merics-rhodium-group-chinese-fdi-in-europe-2023%20%281%29.pdf\"><span style=\"font-weight: 400;\">foreign direct investment<\/span><\/a><span style=\"font-weight: 400;\"> into Europe. That\u2019s more than France, Germany, and the UK combined.\u00a0 \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In response to the tariff hike, Hungary<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/hungary-condemns-eu-tariffs-chinese-ev-imports-2024-06-12\/\"> <span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> it disagreed with the \u201cbrutal European punishment of Chinese electric car manufacturers with punitive tariffs.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In December, Tesla rival BYD announced plans to open its first European EV manufacturing plant in Hungary, becoming the first major Chinese automaker with a production base in Europe.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hungary has also spent more than $1bn of its own money to support new EV battery plants built by Chinese firms like CATL and Huayou Cobalt.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cSimilar to some other countries and OEMs, Hungary wants to focus on cooperation and free competition as this will be more effective in transitioning to EVs faster,\u201d said Edmondson from IDTechEx.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_now\"><\/span><b>What now?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Under the EU\u2019s proposal, BYD will see the lowest tariff rate of 17.4%. This is because the company provided evidence to the Commission that it had benefited from less state support.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Elon Musk\u2019s Tesla will face a 21% duty for its China-made models, but has <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lied for a reduced rate, while other carmakers have yet to do so.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The tariffs are set to come into force on July 4, should \u201cdiscussions with Chinese authorities not lead to an effective solution,\u201d the Commission said.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If talks between the EU and China prove fruitless, prices of China-made EVs will go up in Europe. Especially for BYD, which has become a world leader in cheap EVs, that might not actually prove as disastrous as it sounds.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to<\/span> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/d9a32016-a03b-452f-9d20-4d85a612c4c7\"><span style=\"font-weight: 400;\">analysts at Citi<\/span><\/a><span style=\"font-weight: 400;\">, BYD\u2019s European operations even with the new tariffs could still prove more profitable than its domestic business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The real losers could be European automakers and the EU\u2019s green ambitions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe long term impact of restricting trade with China more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly could be detrimental to EU manufacturers and adoption of EVs especially when the EU is still so reliant on China for components like EV batteries,\u201d said Edmondson.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The EU\u2019s decision follows in the footsteps of the US government, which announced in May that it would hike import duties on China-made EVs by more than 100%.<\/span>\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN63nwsw68G3Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/news\/germany-hungary-oppose-the-eu-tariffs-on-chinese-evs\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The European Union has hiked tariffs for EVs imported from China, drawing reproach from Beijing and some of its own member states, including Germany, Sweden, and Hungary. The tough new tariffs range between 17.4% and 38.1%, on top of the existing import duty of 10%. If the EU enforces these provisional measures, Chinese EVs are&#8230;<\/p>\n","protected":false},"author":1,"featured_media":624069,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/tnw-blurple?filter_last=1&fit=1280%2C640&url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2024%2F06%2FBYD_EU-EV-tariffs.jpg&signature=463b811d59967da76c7256add5402487","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-624068","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/624068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=624068"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/624068\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/624069"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=624068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=624068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=624068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}