Temporary Halt Aims to Navigate New Tariff Challenges as European Demand Dips
The Chinese government has requested its automotive companies to temporarily suspend their expansion plans in Europe while negotiations regarding high tariffs on Chinese electric vehicles are underway. With tariffs ranging from 8% to 35% set to take effect at the end of October, Beijing aims to assess the outcomes of discussions with European Commission representatives.
This directive is not mandatory, but it reflects concerns about the declining demand for electric vehicles in the European market. Recent reports indicate that sales have halved in several countries due to reduced subsidies for electric car buyers, including in Romania.
As a result, some brands are reconsidering their European operations. Dongfeng has postponed plans to assemble cars in Italy, while Changan Automobile has canceled a launch event in Milan. Additionally, Chery Automobile has delayed its production start at a Spanish facility to October 2025, citing the need to evaluate the impact of the impending tariffs on its investment.
Despite these challenges, the European market remains appealing for Chinese automakers, who can command significantly higher prices than in their domestic market. If the tariffs are not implemented, many Chinese models could be sold at lower prices compared to competing European brands.
Editor: Andreea Gudin
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