EU hits Chinese EVs with up to 38% tariffs

STORY: The EU is slapping new import tariffs of up to 38.1% on Chinese electric vehicles.

That’s over what Brussels sees as excessive subsidies given to makers there.

European Commission Vice-President Margaritis Schinas.

"This value chain benefits from unfair subsidiarisation which is causing a threat of economic injury to EU battery electric vehicles producers. On this basis, the Commission has reached out to the Chinese authorities to discuss these findings and explore possible ways for resolving the issues identified."

Exact levies vary by brand, with Beijing's state-owned firm SAIC hit the hardest at 38.1%.

Brussels said it would set tariffs for BYD at 17.4%, while another Chinese giant in Geely hit 20%.

Companies that cooperate with the European investigation could face a lower rate.

Wednesday’s news follows less than a month after Washington quadrupled its duties on Chinese EVs to 100%.

The moves come amid alarm among European and U.S. automakers over an influx of cheap cars from the country.

BYD saw its European sales triple last year, albeit from a low base.

MG - a unit of SAIC - is gaining market share fast.

Numerous other brands from the country are preparing to launch cars in Europe.

Beijing has rebuked the EU over its probe into EV subsidies.

Officials have urged cooperation, and lobbied against the imposition of tariffs.

On Wednesday China's commerce ministry said it would take all necessary measures to safeguard the legitimate rights of Chinese automakers,.

It further said the bloc's decision violated global trade rules.

Officials have previously called the U.S. tariffs “bullying”, and said they were evidence that some Washington policymakers were “losing their minds”.