EU enforces high tariffs on Chinese EV's

The European Union will continue to impose steep tariffs on electric vehicles produced in China, the EU executive announced on Friday.

The plan of five years charges of up to 45% on electric vehicles (EVs) made in China are scheduled to take effect next month, therefore costing automakers billions of more euros to enter the EU.

The EU executive stated that it had "the necessary support" to enact the tariffs, but it will carry on with negotiations with Beijing in search of a different course of action.

Equity in European automakers Volkswagen and Renault opens new tab increased in anticipation that as global demand declines, the tariffs will let them to compete domestically against Chinese competitors.

However, some local Chinese players are becoming increasingly concerned that tariffs may encourage Chinese businesses to expedite their plans to expand their manufacturing capacity in the area.

Beijing this year started its own investigations into imports of EU brandy, dairy, and pork supplies in what was already perceived as retribution. 

Over the past five years, the EU's position toward Beijing has become harsher. It sees China as a competitor and structural opponent, as well as a possible partner in some areas.

China can produce three million electric vehicles annually, which is double the size of the EU market, according to the Commission. The most apparent destination for those EVs, considering the 100% tariffs in the US and Canada, is Europe.

The Commission may revisit a pricing agreement, which usually entails a volume cap and a minimum import price, as part of ongoing talks with China.