Contents
On April 28, 2025, the EU imposed new tariffs on China. The EU announced anti-subsidy duties ranging from 20.6% to 66.7% on Chinese-imported aerial work platforms. Investigations found that Chinese manufacturers, benefiting from government subsidies, low-interest financing, and raw material support, were selling these products at prices approximately 20% lower than the EU market average. This led to a sharp increase in China’s market share in the EU from 29% in 2020 to 41% in 2022. The EU (European Union) only released market share data up to 2022, without mentioning the latest figures for 2023 and 2024—an omission that has been viewed in both official statements and media reports as a sign of “data lag” or “selective citation.”
The EU’s New Tariff Measures Against China: Targeted Industries
1. Electric Vehicles (EVs)
As of October 30, 2024, the EU implemented new tariff measures on electric vehicles imported from China. On top of the existing 10% import duty, the EU added anti-subsidy tariffs of up to 35.3%, bringing the total tariff rate to as high as 45.3%. The specific rates are as follows:
-
BYD: 17%
-
Geely: 18.8%
-
SAIC: 35.3%
-
Tesla (vehicles manufactured in China): 7.8%
-
Other non-cooperative manufacturers: 35.3%
2. Aerial Work Platforms (Mobile Lifting Equipment)
On April 28, 2025, the EU announced new tariffs on Chinese-imported aerial work platforms, ranging from 20.6% to 66.7%. Investigations revealed that Chinese manufacturers benefited from state subsidies, low-cost financing, and material support, enabling them to sell their products at around 20% below EU market prices. This led to an increase in China’s market share in the EU from 29% in 2020 to 41% by 2022. The EU concluded that such subsidies created unfair competition and market distortion.
Reasons Behind the EU’s Tariffs on China
The EU cited several key reasons for the new tariffs:
-
Unfair Subsidies: The EU determined that the Chinese government provided unfair subsidies to certain industries, allowing them to sell products below normal market prices and disrupt fair competition.
-
Protection of Domestic Industry: To prevent local manufacturers from losing market share due to price competition, the EU took action to protect employment and industrial development within the bloc.
-
Trade Imbalance Response: The EU has long faced a trade deficit with China. These tariffs are seen as a reaction to the structural imbalance in bilateral trade.
Similarities Between EU and U.S. Measures Against China
The EU’s tariff measures resemble recent actions taken by the U.S. against Chinese electric vehicles:
-
Anti-Subsidy Investigations: Both the EU and the U.S. cited unfair subsidies from the Chinese government as justification for initiating investigations and imposing duties.
-
Domestic Industry Protection: Both sought to shield local industries from the impact of low-priced imports.
-
Protectionist Tendencies: These moves are viewed as protectionist and could spark trade tensions. However, there are differences in execution: the EU gave lower rates to Western brands like Tesla that manufacture in China, while the U.S. imposed uniform, high tariffs on all EVs made in China.
China’s Response
Following April 28, 2025, China’s Ministry of Foreign Affairs held regular press briefings. During one such briefing, spokesperson Guo Jiakun reiterated that there are no winners in trade wars or tariff conflicts. He emphasized that the tariff war was initiated by the U.S. and that resolving the issue requires dialogue on the basis of equality, mutual respect, and reciprocity.
While Guo Jiakun did not directly comment on the EU’s tariff action during the briefing, it was noted that many EU member states also provide subsidies to their domestic industries. However, such aid must comply with EU-wide rules on transparency and fair competition. The EU views China’s subsidy model as structurally opaque, contributing to “price dumping” and “overcapacity”—the main reasons cited for this round of tariffs.
Currently, the EU and China are in negotiations over setting a minimum price for certain Chinese exports, including electric vehicles, as an alternative to high tariffs in hopes of easing trade tensions.
