EU Considers Tariffs on Chinese Electric Vehicles

The European Commission announced it has sufficient backing from EU members to vote on imposing tariffs of up to 45% on imports of Chinese-made electric vehicles. However, the Commission will continue negotiations with China to seek a resolution.

Volvo Cars Reacts Positively

Volvo Cars, based in Sweden and majority-owned by China’s Geely, saw its shares rise by 4% in early trading as news of potential negotiations emerged. A spokesperson for Volvo mentioned they received optimistic signals from the Commission regarding tailored solutions for the auto industry, particularly for Volvo.

Sweden’s Position on Tariffs

Sweden previously abstained from a non-binding vote on these tariffs and emphasized the importance of an agreement between China and the EU. Volvo Cars confirmed it remains open for discussions with the Commission regarding price undertakings.

Impact on Geely and Future Models

Geely faces an 18.8% tariff on its EVs shipped to Europe. The company expressed disappointment over the Commission’s tariff plans, fearing it could harm economic relations. Volvo’s upcoming EX30 model is expected to be the only one affected by the proposed levy, with production starting in Belgium in 2025.

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Summary at glance

The European Commission announced it has sufficient backing from EU members to impose tariffs of up to 45% on Chinese electric vehicle imports, while continuing negotiations with China. Sweden, home to Volvo Cars, previously abstained from voting and seeks to minimize the tariff impact on the company, which is majority-owned by China’s Geely. Volvo shares rose amid optimistic signals from the Commission for tailored solutions. Geely expressed disappointment, warning of potential trade setbacks.