2 weeks Ago By Tauseef Zia
China is going all out and fighting back to the European market by implying hefty taxes on luxury models imported from Europe. We recently heard that Europe is going to levy hefty tariffs on Chinese EVs in order to reduce the effect of more affordable Chinese EVs into their market yet protecting their own home grown manufacturer. Even USA had a similar thought about the Chinese EVs entering into their markets.
Now China is fighting back and with full force and levying hefty tariffs on European luxury cars. For now China will levy a heavy import tariff of 30.6% to 39% on European brandy and the temporary measure will go on effect from Friday.
They will further impose tariffs on Agricultural products as well. Their next target is going to be large displacement fuel vehicles as a spokesperson mentioned and also said that the country will “take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese industries and enterprises”. The biggest hit will with all this will be taken on German and Italian luxury brands.
One thing to note is that tariffs on these European luxury vehicles is already quite high in China. They have around 25% tariffs on luxury cars and it costs quite a lot to buy the same vehicle in China than in Europe or America. European manufacturers also have a huge presence in the Chinese market with a lot of them making cars specifically for the said market.
The trade wars have just started and this could lead to an ugly end with consumers will be stuck in the middle with governments trying to out-ban each other. Some Chinese EV manufacturers are already planning to set up shop on European soil to keep selling their vehicles at a competitive rate. Click for more latest Auto news .
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