The widely anticipated levy on Chinese EVs been enacted by the EU, with raised tariffs being imposed to protect the EU's manufacturers and combat what the EU sees as state subsidies.

New tariffs from 17.4 per cent to 37.6 per cent will now be applied in addition to the 10 per cent duty already in place.

Chinese manufacturers now face punitive tariffs in both EU and US markets, despite Chinese denials that products are effectively state funded in order to gain a dominant market position and stymie Western companies.

Although implemented the charges will not actually be levied until an investigation into this state support concludes and will retrospectively be applied if the findings concur with the EU’s view.

Some manufactures are worried that there will be reprisals from China on their manufacturing bases in China (although these will also be affected by tariffs if imported into the EU) and others worry over the supply chain of components.

Campaigners are also scared that the lack of cheaper EVs from China will slow the adoption of electric vehicles, and infrastructure.

And there will be winners and losers from EU carmakers, with some, such as BMW with large Chinese plants more at risk than, say Renault, with limited operations. Conversely it may encourage more Chinese carmakers into the EU, which might be the realpolitik behind the sliding scales of tariff: build here or be taxed.

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