Currently reading: New 31% EU import tariff for car makers that move production to China
European Commission announces new tariffs aimed mainly at penalising subsidised Chinese manufacturers

European car makers that build EVs in China and import them back to the continent will be hit with 21% additional duty taxes by the EU.

Announced yesterday by the European Commission, these new tariffs, which could go as high as 38.1% for some Chinese car makers, are aimed at levelling Europe's automotive playing field.

The new taxes are on top of the existing 10% import tariff.

As well as penalising Chinese manufacturers that are undercutting local rivals with the help of government subsidies, the European Commission is also hitting firms – such as Mercedes-Benz, BMW and Renault – that have moved some production from Europe to China, where labour rates are cheaper.

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