Will the EU Tariffs on Chinese Electric Vehicles Also Hit EU Firms?

Peter Klimek, Maximilian Hess, Veit Kohnhauser, Joshua Zelle and Klaus Friesenbichler
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Peter Klimek: Supply Chain Intelligence Institute Austria
Maximilian Hess: Supply Chain Intelligence Institute Austria
Veit Kohnhauser: Logistikum, FHOO
Joshua Zelle: Supply Chain Intelligence Institute Austria

No 3, ASCII Studies from Supply Chain Intelligence Institute Austria

Abstract: On 12 June 2024, the European Commission announced its first provisional decision under the anti-subsidy inquiry for battery electric vehicles (BEVs) assembled in China. Initially driven by Western foreign direct investment, Chinese car producers have become leading manufacturers of BEVs. This paper examines whether the imposition of import tariffs may also impact EU producers, analyzing the issue within a broader trade context. A 2023 analysis reveals that 55% of BEVs sold in the EU and manufactured in China were produced by EU carmakers through joint ventures, down from 68% in 2022. As a result, these companies will be directly affected by the tariffs. However, 85% of the suppliers to these original equipment manufacturers (OEMs) are located in China, suggesting that EU suppliers will be less impacted than Chinese firms.

Keywords: EU Tariffs; Electric Vehicles; China; EU Firms; BEVs; Trade Policy; Automotive Industry (search for similar items in EconPapers)
Date: 2024-06
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