Monday, November 10, 2025

EU Tariffs on Chinese Imports 11-10-25

The EU is not imposing a strict limit on the number of Chinese EV imports but has implemented additional tariffs on them, which are in effect throughout 2025. These tariffs are designed to counteract what the EU considers unfair state subsidies, making the imports less competitive.  

Key Details

Tariffs in Effect: As of 2025, the EU has imposed additional countervailing duties (CVDs) ranging from 17% to 35.3% on Chinese-made battery electric vehicles (BEVs), depending on the manufacturer. This is on top of the standard 10% EU import duty, meaning total tariffs can reach over 45% for some companies.

Company-Specific Rates: The duties vary by company:

BYD: 17%

Geely: 18.8%

SAIC: 35.3% (resulting in a total tariff of 45.3%)

Tesla and cooperating producers: face lower or weighted average rates on their China-built exports to the EU.

Goal: The measures aim to address market distortions caused by Chinese subsidies and protect the European auto industry, rather than setting a hard quota on import volume.

Effectiveness and Chinese Response: Despite the tariffs, Chinese automakers have reportedly nearly doubled sales (including hybrids not covered by the current tariffs) in the first eight months of 2025 by absorbing some costs, focusing on premium segments, and expanding into hybrid models. Chinese manufacturers are also establishing factories within the EU (e.g., in Hungary) to circumvent the tariffs. China has retaliated by launching anti-dumping probes on some EU products, such as brandy.

Ongoing Discussions: The EU and China have engaged in talks to find an alternative to the tariffs, such as possible minimum price commitments for imported cars, but significant gaps remain in negotiations. 

No, the European Union (EU) has not imposed a numerical limit or quota on Chinese EV imports in 2025. Instead, the EU implemented additional tariffs on electric vehicles produced in China, which took effect in late 2024 and remain in place in 2025. 

The measures implemented by the EU are:

Tariffs: The EU imposed provisional countervailing duties of up to 37.6% on Chinese-made EVs, on top of the existing 10% import duty, based on the findings of an anti-subsidy investigation.

The specific rates vary by manufacturer:

BYD: 17%

Geely: 18.8%

SAIC: 35.3%

Other manufacturers that cooperated with the investigation face a 20.8% duty, while non-cooperative firms face 37.6%.

No Quotas: The EU is using tariffs, not quotas (numerical limits), as its primary measure to address the surge of Chinese EV imports.

Negotiations: The EU and China have been in discussions to potentially find an alternative solution, such as China agreeing to minimum prices for its exported EVs, but no agreement has replaced the tariffs so far in 2025. 

Despite the tariffs, Chinese automakers have reportedly nearly doubled sales in the bloc in the first eight months of 2025, in part by absorbing some of the costs into their profit margins or pivoting to other models like hybrids. Some Chinese firms are also establishing manufacturing plants within the EU (e.g., BYD in Hungary) to circumvent the tariffs. 

https://www.google.com/search?q=is+the+EU+limiting+the+number+of+chinese+EV+imports+2025

Norb Leahy, Dunwoody GA Tea Party Leader

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