2/ Historically, countervailing duties (CVDs) have been in the high single or low double digits. In this case, the maximum duties on EVs are notably high. We have mapped out the maximum CVD for historic cases here, EV duties are above average pic.twitter.com/MZWPO8ns6l
— Gregor Sebastian (@gregor_seb) June 12, 2024
Chinese EV exports have soared in recent years, rising from 4.2 percent in 2018 to 35 percent of the global total in 2023. Almost one-fifth of EVs purchased in Europe last year were manufactured in China, the European Federation for Transport and Environment reported, with that figure expected to rise to one-quarter this year.
Gregor Sebastian, an analyst with the Rhodium Group, a think tank in New York, called the new tariffs “notably high.”
“Historically, countervailing duties have been in the high single or low double digits,” he wrote on X, formerly Twitter, adding that the new duties give the EU greater leverage in its negotiations with China.
The spokesperson for China’s Ministry of Commerce signaled Wednesday that Europe’s move could further intensify trade tensions. Beijing will “resolutely take all necessary measures to firmly defend the legitimate rights and interests of Chinese companies,” the spokesperson said.
China has already launched anti-dumping inquiries, including on European brandies and industrial plastics from the EU, U.S., Japan and Taiwan.
Sebastian wrote on X that the almost 40 percent duty increase on SAIC would “significantly impact profit margins,” which could prompt the firm to build a plant in Europe or one of China’s free trade partners.
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Source link : https://www.newsweek.com/china-responds-european-union-tariffs-1912055
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Publish date : 2024-06-13 09:45:37
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