EU Announces Reduced Customs Duties for Chinese Electric Cars: What You Need to Know

The European Commission has announced a reduction in customs duties for electric cars manufactured in China, bringing the tariffs down to nearly 40 percent. These new tariffs will take effect on Friday, impacting both imports and cars that have already been ordered if imported after the tariff implementation date. This news is good for customers who have long delivery times for popular electric car models, as the temporary tariffs are only in place for four months, with ongoing discussions between China and the EU expected during this period.

Customers should be aware of how customs duties can affect car prices. According to Teemu Nieminen, a lawyer of Autotuojat ja -teollisuus ry, sellers have the right to transfer customs fees to the final price. However, buyers have the option to withdraw from a transaction if the final price increases by more than four percent due to customs duties. It’s important for consumers to check whether customs fees have been included in the price of a car they’ve ordered or are considering purchasing.

For customers waiting for delivery of Volvo cars ordered before the temporary tariffs came into effect, prices will remain the same as at the time of transaction. Volvo will determine its future operating methods based on whether it wants to make permanent these punitive duties or not. The popular EX30 model by Volvo which is being moved into production in Europe will not be affected by new customs duties.

Byd has stated that their prices won’t be affected by new tariffs as they will honor their price guarantee for future orders despite imposition of tariffs. On the other hand, Tesla may need to increase its Model 3’s price due to new customs duties as some of their cars are manufactured in China. However, representatives from Tesla haven’t confirmed yet on what size of an increase in price could happen at this time.