The Italian automotive industry, represented by the Anfia association, is calling on the European Union to implement a significant tariff of 80% on Chinese-made cars and auto parts that exceed a specific quota. This measure is proposed as a protective shield for the European automotive sector amidst growing concerns over competition from China.
Anfia’s Proposal for Fairer Competition
Roberto Vavassori, the president of Anfia, has suggested a tariff mechanism that would allow Chinese vehicles and components to enter the EU market duty-free up to an annual limit of 8% of new car registrations. Any imports exceeding this threshold would then be subject to an 80% tariff. Vavassori emphasized that this tariff structure should encompass both complete vehicles and individual components, noting that parts constitute approximately 80% of a car’s total value.
“We have immense respect for the achievements of the Chinese automotive industry,” Vavassori stated in a recent interview. “However, this respect has now turned into concern. Europe cannot afford to lose an industry that is vital for its strategic autonomy.”
Mounting Concerns in the European Auto Market
Vavassori’s appeal comes at a critical juncture for the European auto industry. The sector is grappling with persistent market demand slowdowns and intensifying competition from Chinese automakers. Just days before his statement, Volkswagen, a major European automotive giant, announced a substantial restructuring plan to navigate these challenging market conditions.
Data from the European Automobile Manufacturers’ Association (ACEA) highlights the escalating presence of Chinese brands in the EU. In the first half of the current year, Chinese car manufacturers captured a market share exceeding 9% within the EU.
Supply Chain Vulnerabilities and Economic Forecasts
The Italian automotive supplier sector faces significant risks. Vavassori revealed that in 2025, Italian automotive suppliers were projected to export 4.9 billion euros worth of goods to Germany, with Volkswagen accounting for 20% of this total procurement volume. However, he warned that the impact of shrinking European automotive production has already led to a 4.6% decline in Italian auto parts exports during the first half of the year, with an estimated full-year decrease of around 10%.
Vavassori cautioned that Volkswagen’s strategic adjustments might be an early indicator of a larger industry consolidation. He projected a dire outlook for Italian auto parts exports, potentially falling by 40% to 50% by 2028 if protective measures against Chinese imports are not implemented, which he believes would signal the “end of the entire sector.”.
Current EU Tariffs and Proposed Legislation Critiques
Currently, the EU imposes a standard 10% import tariff on vehicles, with additional duties applied to Chinese electric vehicles. These supplementary tariffs result in a composite tax rate ranging from 18% to 45%, depending on the specific manufacturer. This existing measure, implemented in 2024, is set to remain in effect for five years.
Vavassori also expressed strong criticism of the EU’s proposed “Industrial Acceleration Act.” While the legislation aims to bolster industrial investment, support decarbonization efforts, and promote local manufacturing, Vavassori argues that it could inadvertently boost imports from countries with free trade agreements with the EU, such as Morocco and Turkey, thereby failing to strengthen European domestic production. “As currently drafted, this law will accelerate nothing but the decline of the automotive industry,” he asserted.
Doubts Over Chinese Manufacturers’ Local Commitments
Furthermore, Vavassori raised doubts about the long-term commitment of Chinese car manufacturers establishing supply chains within Europe. He pointed out that brands like BYD and Chery, while relocating some production to Europe, exhibit a low willingness to source components locally. Vavassori characterized these European factories as “screwdriver plants,” predicting that the vast majority of components will still be imported from China or lower-cost countries in its vicinity.
