Chinese carmakers reset European ambitions as EU tariffs bite

Chinese carmakers reset European ambitions as EU tariffs bite - FT

The European Union's latest round of anti-dumping and anti-subsidy tariffs on Chinese machinery, including those used in construction, has sent shockwaves through the automotive sector. The European Commission announced duties of up to 66.7% on Chinese mobile access equipment (MAE) on April 24, 2025, citing unfair subsidies and artificially low prices [1]. This move is part of a broader trend of the EU imposing tariffs on Chinese products, with nearly 80 Chinese products now subject to such duties.

The tariffs are aimed at protecting domestic EU producers in a market worth over €1 billion annually. Companies like Hunan Sinoboom Intelligent Equipment Co., Zoomlion Intelligent Access Machinery, and Zhejiang Dingli Machinery Co. are among those targeted. The EU MAE producers, such as French companies Haulotte and Manitou, stand to benefit from these tariffs [1].

The impact of these tariffs extends beyond construction machinery to electric vehicles (EVs). The EU increased tariffs on Chinese-built EVs to as much as 45.3% last October, sparking concerns from industry leaders. Mercedes-Benz CEO Ola Kallenius has urged the EU to find an equitable solution, cautioning against using tariffs as the primary tool [2]. He emphasizes the importance of open competition for innovation and has called for a level playing field in the market.

In response to the tariffs, Chinese carmakers are reassessing their European ambitions. BYD, a prominent Chinese NEV (New Energy Vehicle) maker, has been expanding its European presence despite the tariffs. The company has launched models in Croatia, Serbia, Switzerland, and the Czech Republic and Slovakia [3]. However, the cumulative impact of these tariffs on BYD's European operations remains to be seen.

The European Commission has shown a willingness to negotiate alternative solutions to the tariffs with China. Discussions are ongoing about possible commitments to minimum prices, known as price undertakings for imported cars [2]. The EU is exploring these options as part of its broader trade negotiations with China.

In conclusion, the EU's latest tariffs on Chinese machinery and EVs are reshaping the European automotive landscape. While the tariffs aim to protect domestic producers, they also present challenges for Chinese carmakers. The future of Chinese carmakers' European ambitions will depend on how these tariffs evolve and whether alternative solutions can be found.

References:
[1] https://www.globalbankingandfinance.com/UK-EU-CHINA-SUBSIDIES-d9db914d-6dd2-4690-8089-d81f591bccfa
[2] https://economictimes.indiatimes.com/news/international/business/mercedes-ceo-urges-eu-to-find-equitable-solution-to-china-made-ev-tariff-dispute/articleshow/120540353.cms
[3] https://cnevpost.com/2025/04/28/byd-enters-croatia/