EU’s extra tariffs of up to 35.3% on Chinese EVs angers Beijing

BRUSSELS – The EU’s decision to impose hefty tariffs on Chinese-made electric cars prompted anger from Beijing on Wednesday, after an anti-subsidy probe concluded China’s support undercut European automakers.
The extra taxes have been controversial, with strong opposition from Germany and Hungary amid fears of provoking China’s ire and setting off a bitter trade war.
Beijing slammed the European Union’s decision, saying it did not “agree with or accept” the tariffs and has filed a complaint under the World Trade Organization (WTO) dispute settlement mechanism.
“China will… take all necessary measures to firmly protect the legitimate rights and interests of Chinese companies,” Beijing’s commerce ministry said.
The EU trade chief Valdis Dombrovskis said Tuesday that “by adopting these proportionate and targeted measures after a rigorous investigation, we’re standing up for fair market practices and for the European industrial base”. 
“We welcome competition, including in the electric vehicle sector, but it must be underpinned by fairness and a level playing field,” he said.
But Germany’s main auto industry association warned the tariffs heighten the risk of “a far-reaching trade conflict”, while a Chinese trade group slammed the “politically motivated” decision even as it urged dialogue between the two sides.
The duties will come on top of the current 10 percent on imports of electric vehicles from China.
The decision became law following its publication in the EU’s official journal later on Tuesday and the duties will enter into force from Wednesday.
Brussels’ probe found that China’s state subsidies were unfairly undercutting European automakers. 
Once they come into effect, the tariffs will be definitive and last for five years.
The extra duties also apply, at various rates, to vehicles made in China by foreign groups such as Tesla — which faces a tariff of 7.8 percent.
Chinese car giant Geely — one of the country’s largest sellers of EVs — faces an extra duty of 18.8 percent, while SAIC will be hit with the highest at 35.3 percent.