EU to Impose Higher Tariffs on Chinese Electric Vehicles from 2024
The European Union has decided to increase import duties on Chinese battery electric vehicles (BEVs) starting from July 2024, according to Julius Baer, a leading international wealth management firm with a strong Swiss heritage.
This measure follows an investigation by the European Commission, which concluded that Chinese BEVs benefit from unfair subsidies. The new tariffs will range from 17% to 38%, in addition to the existing 10% duties.
In response, China is expected to increase its import duties on European cars, particularly those from German manufacturers such as BMW and Mercedes-Benz. Although this increase may moderately reduce their annual revenues, investor confidence in the European market could be affected.
In China, despite weak domestic demand, economic growth is expected to stabilize in the second half of 2024 due to increasing export demand. Recent data shows a slight improvement in industrial production and retail sales, although fixed-asset investments remain stable.
For investors, this situation means that European automaker stocks will remain under pressure in the short term, but an improvement is expected in the second half of 2024.
In China, a 4.8% economic growth rate is forecast for 2024, driven by exports. Investors should closely monitor this trade dispute to adjust their strategies accordingly.