Czech carmakers warn tariffs on Chinese EVs could hit supply chains

5 months ago 24

The possible introduction of significant trade tariffs on Chinese electric vehicle (EV) imports, announced by the European Commission on Wednesday, has raised concerns among Czech carmakers, who argue that the move may not solve problems related to Chinese competition and could prove counterproductive.

To address market imbalances and protect European carmakers from unfair competition, the European Commission announced on Wednesday that it will impose additional tariffs of 17.4% to 38.1% on electric cars produced in China.

However, like German manufacturers, the Czech Automotive Industry Association believes such measures may have adverse effects.

“On the contrary, it was the removal of trade barriers that led to the expansion of international trade and prosperity in recent decades – especially in the automotive sector, which is based on strong exports,” said Zdeněk Petzl, the association’s executive director.

Petzl warned that China could retaliate against Europe and the US, exacerbating already tense trade relations, highlighting that European car companies import over 90% of key materials for EVs and batteries from China. Any disruption to these imports could raise import prices and jeopardise the EU’s ambitious carbon reduction targets.

“The introduction of new tariff measures will certainly be felt by Chinese manufacturers and may slow their expansion, but we do not expect this to affect China’s subsidy policy,” Petzl said while advocating a systemic approach that would strengthen European industry, improve competitiveness and open up new markets.

However, Czech Transport Minister Martin Kupka (ODS/ECR) is convinced that the EU must stand up for itself.

“The European market must not be completely closed off from Chinese competition, but it must defend itself against incomparable conditions,” he said.

Kupka also highlighted the billions of dollars in subsidies that Beijing provides to its carmakers, creating a significant disadvantage for European manufacturers.

“It is necessary to choose such a level of customs duties and competitive conditions so that we do not artificially keep the price of electric cars at a level that makes them unaffordable for citizens,” Kupka added.

(Aneta Zachová | Euractiv.cz)