Will the increase in tariffs on Chinese electric cars impact car buyers?

The European Commission confirmed more favorable customs duties for electric cars manufactured in China, reducing the tariffs to nearly 40 percent. These tariffs will take effect on Friday, impacting both imports and cars that have already been ordered if imported after the tariff implementation date. This is a common issue for popular electric car models, which often have long delivery times. However, the new tariffs are temporary for four months, with ongoing discussions between China and the EU expected during this period. The EU will need to decide whether to make the punitive duties permanent.

The impact of customs duties on car prices can be significant. According to Teemu Nieminen, lawyer of Autotuojat ja -teollisuus ry, sellers have the right to transfer the customs fees to the final price. However, buyers can 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, the prices will remain the same as at the time of the transaction. Volvo will determine its future operating methods based on the decision about permanent tariffs. Volvo’s popular EX30 model, which is being moved to production in Europe, will not be affected by the new customs duties.

Byd, another Chinese car manufacturer, has stated that the prices of their cars won’t be affected by the new tariffs. The company will honor its price guarantee for future orders despite the imposition of tariffs. For Tesla, the company has indicated that it may have to increase the price of its Model 3 model due to new customs duties. However, Tesla representatives have not confirmed the size of the price increase at this time. Some of Tesla’s cars are manufactured in China.