China has officially filed a complaint with the World Trade Organization (WTO) in response to new tariffs imposed by the European Union (EU) on electric vehicle (EV) imports. The EU’s decision, finalized last week, sets tariffs ranging from 8% to 35% on Chinese-made EVs for five years, adding to an existing 10% import duty on vehicles.
This move follows a year-long investigation by EU authorities, which concluded that Chinese EV manufacturers benefit from significant state subsidies, resulting in what Brussels calls “unfair competition” against European carmakers. In a statement released Monday, China’s Ministry of Commerce condemned the tariffs as baseless and stated that the EU’s actions violate WTO rules, adding, “China firmly opposes the decision and has filed a lawsuit to safeguard the development interests of the EV industry and global green transformation cooperation.”
The Chinese government accused the EU of trade protectionism under the guise of countervailing duties, claiming the EU’s decision ignored objections from EU member states, industry stakeholders, and the public. Notably, Germany and Hungary have opposed the measure, arguing it may harm European consumers by limiting access to affordable EVs.
China’s Ministry of Commerce emphasized that the tariffs could lead to a potential “trade war” if the EU continues to escalate the situation. In a retaliatory move, China recently announced provisional tariffs on EU-produced brandy and initiated an anti-dumping investigation targeting certain EU pork and dairy products.
The EU’s tariffs align with a similar move by the United States, which raised its tariff on Chinese EVs to 100% earlier this year. China’s growing presence in the EV market has rapidly expanded; Chinese electric car imports to the EU soared to $11.5 billion in 2023, up from $1.6 billion in 2020, now accounting for 37% of all EV imports to the bloc.
This dispute raises concerns over potential impacts on trade relations and the broader global market for electric vehicles, as China and the EU navigate competing economic interests and industry protections.
