Extra tariffs on Chinese electric cars imported into the EU will come into force today after formal approval yesterday and a year of wrangling between the two zones.
Already subject to a 10% car import duty, Tesla will face an additional 7.8% hit, while China’s SAIC, which owns the MG brand, will face a 35.3% surcharge.
Set by the European Commission, which oversees Europe’s trade policy, the surcharges are to counter Chinese manufacturers' preferential financing and access to land, batteries and raw materials at sub-market prices, it said.
China has a huge EV production surplus and European manufacturers say that dumping these cars in the EU threatens this entire industry.
According to the EU Commission, China’s share of Europe’s EV market is now at 8% and could reach 15% next year.
Described the move as arbitrary, China’s Chamber of Commerce has threatened retaliation on key EU exports such as brandy, dairy pork products and luxury petrol-fuelled cars.
Germany has been the biggest EU opponent of tariffs because of the importance of China's luxury car market to its huge auto industry.