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Fastmarkets has published an interactive table to help subscribers keep track of the different import tariffs that EVs face globally.
China represents a focal point for battery electric vehicle (BEV) production, benefitting from cheaper labor costs and developed upstream battery supply chains. As a result, Western automakers have lobbied for what they describe as a level playing field by way of tariffs and financial incentives.
Earlier this year, the United States moved to impose a 100% tariff on the imports of BEVs from China. Prior to this, US tariffs on such vehicles had stood at 27.5% since 2018.
From 2018-2023, US EV imports from China increased from $7.2 million to $388.8 million in value with a market share accounting for 2% of US EV imports, according to data from the US International Trade Commission.
Canada has similarly placed 100% tariffs on imports of EVs from China.
Brazil also moved to impose tariffs on EVs, which began at 10% in January and increased to 18% from July. This increases to 35% from July 2026. Hybrid vehicles also face tariffs of 25%, rising to 35% from July 2026. This is to encourage domestic production. Notably, these tariffs apply to all electric and hybrid vehicles irrespective of origin.
Brazil recorded its highest-ever inventories of electric and hybrid vehicles in August as a result of the newly adopted gradual tariff policy for imports of these products, according to Brazilian automotive association ANFAVEA. Between January and August, 72,476 vehicles imported into Brazil came from China, a 339% increase from 2023.
The European Union announced earlier this year intentions to impose varying tariff levels of between 17% and 38% on automakers, dependent on their level of communication with the Commission during its anti-subsidy investigation. Automakers like Tesla, BMW and Volkswagen also incurred provisional tariffs due to their vehicles produced in Shanghai and imported into Europe.
This is on top of the existing 10% tariff rate for imports of cars from China. In August, the Commission moved to reduce tariffs on Tesla, BYD and Geely amongst others, following further investigations by the EU Commission. Tesla saw its imposed tariff cut to 9% from 20.8%. Reportedly, for Tesla this could be cut further to 7.8%.
The EU Commission stated in the announcement that “the EU’s green transition cannot be based on unfair imports at the expense of EU industry.”
The Commission also sought to calm fears of an escalation in the potential for a trade war by stating “the duties would therefore aim to ensure that EU and Chinese industries compete on a level playing field. The aim is not to close the EU market to such imports.”
Provisional tariffs were imposed from July 4. Following this, a vote for the tariffs to be made permanent is scheduled for the end of October, which would mean the tariffs remain in place for five years if the vote passes. A qualified majority of 15 countries representing 65% of the EU’s population is required for the duties to pass.
There are fears, however, that member states like Spain could attempt to garner enough support to vote down the tariffs due to worries of an escalation in a trade war that would affect exports of products including dairy, brandy and pork into China. An anti-dumping investigation into those products has already been launched by China.
“We need to consider, all of us, not only member states but also [the] Commission, our position towards this [EV tariff] movement,” Spanish Prime Minister Pedro Sanchez told reporters during a recent visit to China.
Earlier this year, Chinese automaker Chery signed a joint venture with Spain’s EV Motors to produce cars later this year at the former Nissan plant in Barcelona, Spain.
From the European tariffs, Chinese automaker BYD incurred a tariff rate of 17.0%, which could affect its published plans to possess a 5% market share of EV sales in Europe by 2026. In August, this was lowered by the Commission from 17.4%.
The EU imported 438,034 BEVs from China in 2023, totaling €9.7 billion ($10.7 billion). This accounted for a market share of 21.7% for BEV sales in 2023. Specifically, Chinese branded BEVs made up 7.6% of that, according to data published by the European Automobile Manufacturers Association (ACEA).
The most recent trade data points to a 12.3% decline in year-to-July exports of electric engine vehicles from China to EU-27, against the same period last year according to Fastmarkets’ analysis. Whilst this could be an effect of impending tariffs, it also reflects poorer demand in Europe that has hit domestic automakers too.
Deliveries of Volkswagen Group BEVs to customers in Europe were at 184,100 vehicles for January-June this year, down by 15.2% from the same period last year. This is compared to a 45.2% increase for deliveries to customers in China at 90,600 vehicles, according to data published by Volkswagen Group.
EU imports of EVs from China in 2023 accounted for 37% of total EV imports for the trade bloc, data from the Rhodium Group shows.
Despite quieter demand so far this year, the European EV market holds incentives for Chinese automakers, namely the opportunity to sell at a higher price level and achieve better profit margins.
A BYD Dolphin model retails new for €35,490 in the Netherlands and is eligible for a €2,950 government subsidy and a €2,500 BYD discount to bring the total to €30,040. This compares with 99,800 yuan (€12,702, $14,016) in China.
This also rings true for non-Chinese automakers; both Tesla and Volkswagen list new vehicles for sale at lower price levels in China, in an effort to compete with domestic manufacturers.
With turbulence seen in Europe for EV demand, some automakers have taken steps to realign business operations. Volkswagen is reportedly considering closing some of its factories for the first time in its history to cut costs amid sluggish EV sales.
New car registrations in Germany for August were at 197,322 vehicles, down by 27.8% from August 2023. Of the registrations for the month, 13.7% were BEVs at 27,024 vehicles, down by 68.8% year on year, partly inflated by the expiry of a financial purchase incentive which finished in September 2023. This has pushed the year-to-date registrations to fall below last year, according to data provided by the German Federal Motor Transport authority Kraftfahrt-Bundesamt (KBA).
One difference between the US- and EU-imposed tariffs is that the US tariffs include components of EVs, including lithium-ion batteries, whereas the EU tariffs apply to the finished vehicle only.
Many Chinese automakers have sought to increase their European manufacturing presence, with BYD announcing in late 2023 it will build a passenger car factory in Europe. The factory is planned to open within three years of the announcement.
BYD also agreed a deal to build a manufacturing plant in Turkey, signing a $1 billion deal in July. Turkey is part of the EU Customs Union, meaning BYD cars manufactured in the country would circumvent the additional 17% tariff imposed on BYD vehicle exports from China into Europe.
“How much of the value added is going to be created in the EU, how much of the knowhow is going to be in the EU? Is it just an assembly plant or a car manufacturing plant? It’s quite a substantial difference.” Valdis Dombrovskis, the European trade commissioner asked, in an interview with the FT.
Delegates attending the Fastmarkets’ European Battery Raw Materials conference next week in Amsterdam, which runs from September 16-18, will no doubt have the EV tariffs in mind ahead of discussions and presentations.
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