The EU would need to impose huge tariffs of about 50 per cent to stem the flow of cheap Chinese electric vehicles into the bloc, according to new analysis.
Brussels’s blockbuster anti-subsidy investigation into Chinese electric cars is expected to conclude within weeks, but researchers at the Rhodium Group say any punitive action is likely to be too timid to deter Chinese carmakers.
“We expect the European Commission to impose duties in the 15-30 per cent range. But even if the duties come in at the higher end of this range, some China-based producers will still be able to generate comfortable profit margins on the cars they export to Europe because of the substantial cost advantages they enjoy,” the report says.
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