EU's new tariffs on Chinese electric vehicles will drive up prices

A BYD Song Pro DM-i electric vehicle car on display in Beijing: The EU is imposing levies on Chinese EVs in proportion to the amount of government subsidy each manufacturer receives. Picture: AP Photo/Andy Wong

On June 12, the European Union announced new provisional levies on Chinese electric-vehicle imports (EVs), based on how much state support manufacturers receive. 

The tariffs follow a months-long investigation in to China's use of financial subsidies, and they will be imposed on top of the 10% tariff that the EU already has in place.