The European Union has slapped China with harsh tariffs for electric vehicles that aim to deter drivers from buying the cheaper options and purchase from legacy Western manufacturers.
The duties, which would come into force from July 4, will be in place on major Chinese electric car brands including BYD, Geely and SAIC.
The imposed tariffs would see BYD pay an extra 17.4 per cent on imports, while Geely has a 20 per cent tariff, followed by SAIC with the highest tariff at 38.1 per cent.
The harsh taxes come as the European Commission completed its investigation into the impact Chinese EVs would have on the EU car market.
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BYD is one of China’s biggest electric vehicle manufacturers
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It comes after research flagged that one in five electric cars in Europe are made in China, with the car manufacturing industry taking a hit as a result.
The investigation also examined the likely consequences and impact of measures on importers, users and consumers of EVs in Europe.
Other EV producers in China which cooperated in the investigation, but were not sampled, would face an average duty of 21 per cent on imports.
However, other Chinese car producers who did not cooperate in the investigation face a hefty duty charge of 38.1 per cent.
The Commission stated that the purpose of the duties would be to remove the “substantial unfair” competitive advantage of Chinese electric vehicle producers due to the existence of “unfair subsidy schemes” in China.
The duties would therefore aim to ensure that EU and Chinese industries compete on a “level playing field” but do not close the EU market to imports.
Meanwhile, one of the world’s most prominent electric car producers is yet to hear what the official duty rate will be.
Tesla, a popular brand which is also produced in China will receive an “individually calculated duty rate at the definitive stage”, the Commission detailed.
The duty on Tesla models follows a similar move made by the US which said it would impose 100 per cent tariffs on Chinese-made vehicles.
While the US and EU have made their position clear on Chinese electric vehicles, the UK, which is currently without a formal Government, has yet to make a decision.
Previously, Transport Secretary Mark Harper warned that the UK could be pushed to put tariffs on Chinese imports of electric vehicles if they disrupt the market.
Chinese EVs are currently some of the cheapest options for drivers in the UK with the BYD Seagull expected to sell for as low as £8,000, nearly half the price of some UK brands.
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Chinese EVs will be charged tariffs from July 4
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The Seagull is set to land in UK stores this year and has already drawn in a crowd, particularly as the UK looks to hone in on its net zero efforts.
The Chinese company – which stands for Build Your Dreams – sold 134,352 electric vehicles in March alone.