He is promoting high tariffs on electric cars from China.

The European Commission said the European Union plans to impose tariffs of up to 36% for five years on imported Chinese electric cars, but remains open to an alternative proposed by Beijing.

These tariffs, which will be in addition to the 10% tax already imposed on cars made in China, will be imposed by the end of October if the bloc’s 27 member states agree to them, unless an alternative agreement is reached by then with Beijing. It will replace the temporary tax imposed at the beginning of July, which amounted to 36%.The Commission said it remained “open” to dialogue and to any alternative proposed by Beijing to avoid imposing the tax, which has been criticised by some member states such as Germany and Sweden.

The committee also announced that Temporary taxes will not be collected. Imposed since July 5. It will continue to be paid, but will remain held in a bank account until the money is recovered.

The new tax is due to be finally adopted by the end of October, unless it is opposed by a qualified majority of EU member states (15 countries representing 65% of Europe’s population).

At the forefront of gasoline and diesel engines, European auto industry fears factories could disappear if it fails to stem expected flood of Chinese electric carsIt’s an area where Beijing has a lead, having long invested in battery manufacturing.

In the European Union, the electric car market is booming. Before the ban from 2035 on the sale of new cars with thermal engines: Chinese electric cars represent 22% of the European market, compared to 3% three years ago, according to industry estimates. Chinese brands represent 8% of the market.

Lower Tax on Tesla

Tesla electric cars (archive photo)

iStock

The European Union plans to impose a 9% tax for five years on imports of Tesla electric cars made in China, It is clearly less than other Chinese-made electric cars.since Tesla received smaller subsidies from China.

In his post Politico The special treatment for Tesla is reportedly a victory for billionaire Elon Musk, despite his troubled relationship with Brussels.

Musk’s relationship with Brussels is very tense. Just last week, Musk insulted the European Union’s chief digital officer, Thierry Breton, who had warned the X platform owner about EU rules on promoting hate speech, before his livestream interview with Donald Trump. Within hours, Breton was accused of interfering in American politics.

Musk also has very good relations with China.despite his social media platform being blocked, which describes itself as a defender of free speech. The crooked businessman has repeatedly expressed admiration for the authoritarian state, and has frequently met with high-ranking officials, as It is trying to maintain Tesla’s position in the Chinese market and secure approval for its self-driving technology.

Tuesday’s announcement is another achievement for Musk: Not only was he able to set up a factory in China without having to work with a local partner, but Tesla’s tariffs reflect the commission’s view that it has not benefited as much as its Chinese competitors from government support,” Politico writes.

“We are fully convinced that we have an accurate picture of the support that is being received,” he said. [Tesla] “In China,” said a Commission official, referring to the company’s simpler structure compared with other groups investigated and its sources of funding outside China. The official requested anonymity because he was not authorized to speak publicly about the matter.

With a 9% tariff, Tesla will face lower import costs than European car brands. For example, Volkswagen’s joint venture with Chinese brand JAC has created the Cupra Tuvascan electric SUV specifically for the European market. These models, which will enter the EU market later this year, will face a 21 percent tariff. BYD will face a 17 percent tariff, SAIC a 36.3 percent tariff and Geely a 19.3 percent tariff. Partner companies will be hit with a 21.3 percent tariff. The tariffs are close to the provisional tariffs announced by the Commission last month.

Brussels and Beijing are trying to find a solution to their trade dispute, but Beijing upped its game earlier this month, filing a lawsuit against the EU at the World Trade Organization. The EU move “will exacerbate trade tensions between China and the EU.”“This sends a strong negative message to global cooperation and green development,” the Chinese Chamber of Commerce in the European Union said in a statement.

EU countries are due to vote to ratify the tariffs for a five-year period until October 30, when the EU’s investigation is expected to be completed. A preliminary, non-binding vote in mid-July showed member states were broadly in favor of the tariffs.