In 2024 the European Commission took an unprecedented step by imposing provisional tariffs of up to 38.1% on electric vehicles imported from China, following an anti-subsidy investigation that concluded Chinese manufacturers had been receiving unfair state aid. This decision marks a turning point in EU-China trade relations and has implications that go well beyond the automotive sector.
The context: why the EU is acting now
China controls more than 60% of global lithium battery production and dominates the supply chain for key components such as electric motors, controllers and BMS systems. Brands such as BYD, MG (SAIC) and NIO have entered the European market aggressively, offering prices 20% to 30% below comparable European manufacturers. The Commission's investigation determined that these price advantages stem in part from direct subsidies, industrial land at reduced cost, preferential financing and privileged access to raw materials.
Impact on importers of components and accessories
Although the tariffs target complete vehicles, the knock-on effect reaches the whole chain. At MingTa Group we have observed that European clients importing automotive components — from charger housings to EV accessories — are reviewing their sourcing strategies. Specific tariffs vary: BYD faces an additional 17.4%, Geely 20% and SAIC 38.1%, while other manufacturers that cooperated with the investigation receive 21%.
Opportunities for strategic importers
Paradoxically, these tariffs create opportunities. Chinese component manufacturers are now seeking to set up assembly plants in Turkey, Morocco and Eastern Europe to circumvent the duties. For importers working with us, this opens up new sourcing routes: components made in China but assembled in countries with preferential agreements with the EU. Our team in Shenzhen is actively monitoring these moves to anticipate the best options for our clients.
Practical recommendations
If you import products related to the e-mobility sector, we recommend: verifying the exact tariff classification of your products (not every component is affected), thoroughly documenting the country of manufacture, and considering long-term agreements with suppliers before the definitive tariffs are confirmed in November. At MingTa Group we can help you navigate this new regulatory landscape with our direct knowledge of the Chinese market.