World News for Students of English

17-06-2024 15:00

The European Commission announced that it will impose additional duties of up to 38.1% on Chinese electric vehicles (EVs) starting in July.

This decision aims to combat China’s excessive subsidies and follows Washington’s move to significantly increase tariffs on Chinese EVs. Brussels’ tariffs will range from 17.4% for BYD to 38.1% for SAIC, on top of the existing 10% car duty. These tariffs are expected to add billions of euros in extra costs for Chinese carmakers, who are already facing slowing demand and falling prices in their domestic market. Chinese EVs currently hold an 8% share of the EU market, up from less than 1% in 2019, and are projected to reach 15% by 2025. They are generally priced 20% lower than EU-made models.

The EU’s decision marks a significant shift in its trade policy, aiming to avoid past mistakes like those with solar panels. An anti-subsidy investigation into Chinese EVs, launched in October, will conclude by November 2.

Difficult words: subsidy (money given by the government to help a business), tariff (a tax or duty to be paid on a particular class of imports or exports), avoid (to keep away from doing something).

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