EV Import Tariffs: US (100%), EU (Anti-Subsidy), UK Compared
Compare electric vehicle import tariffs across US, EU, and UK. US 100% on Chinese EVs, EU anti-subsidy duties up to 35.3%, UK CPTPP benefits explained.
Table of Contents
TL;DR: The US imposes a 112.5% total tariff on Chinese EVs (effectively a ban), the EU applies manufacturer-specific anti-subsidy duties of 17.8%--45.3%, and the UK charges just 2.5%. These diverging policies are reshaping where EVs are manufactured and sold globally.
This guide compares the EV tariff landscape across all three jurisdictions, covering passenger vehicles, batteries, and charging equipment.
What Are the Current EV Tariff Rates Across US, EU, and UK?
The following table provides a side-by-side comparison of the tariff rates applied to battery electric passenger vehicles (HS 8703.80) imported from China and other origins into each jurisdiction. Rates are current as of February 2026.
| Tariff Component | United States | European Union | United Kingdom |
|---|---|---|---|
| MFN base rate | 2.5% | 10% | 2.5% |
| Section 301 (China-origin) | 100% | -- | -- |
| EU anti-subsidy duty (BYD) | -- | 17.0% | -- |
| EU anti-subsidy duty (Geely) | -- | 18.8% | -- |
| EU anti-subsidy duty (SAIC) | -- | 35.3% | -- |
| EU anti-subsidy duty (other cooperating) | -- | 20.7% | -- |
| EU anti-subsidy duty (non-cooperating) | -- | 35.3% | -- |
| Section 122 (global temporary) | 10% | -- | -- |
| Total on Chinese EVs | ~112.5% | 17.8%--45.3% | 2.5% |
| Total on non-Chinese EVs | ~12.5% | 10% | 2.5% (0% CPTPP) |
The disparity is stark. A Chinese-manufactured EV priced at $25,000 at the border would cost approximately $53,125 in duties alone to import into the US, between $4,450 and $11,325 in the EU depending on the manufacturer, and just $625 in the UK.
How Does the US 100% Tariff on Chinese EVs Work?
The United States imposes the highest tariff on Chinese electric vehicles of any major economy. The 100% rate was finalized on September 27, 2024, as part of the Biden administration's four-year review of Section 301 tariffs, specifically targeting strategic sectors where China holds a significant manufacturing advantage.
What tariff layers apply to Chinese EVs in the US?
A Chinese-origin battery electric vehicle entering the US market faces three separate tariff layers that stack additively:
- MFN duty rate (2.5%) -- the standard Harmonized Tariff Schedule rate for passenger vehicles under Chapter 87
- Section 301 strategic tariff (100%) -- imposed under the Trade Act of 1974 following the USTR investigation into China's trade practices
- Section 122 global tariff (10%) -- the temporary 150-day surcharge signed on February 20, 2026, after the Supreme Court struck down IEEPA tariffs
The combined effective rate is approximately 112.5% on the customs value. For context, the pre-2024 Section 301 rate on Chinese EVs was 25%, already a significant barrier. The quadrupling to 100% was explicitly designed to prevent Chinese automakers -- particularly BYD, which surpassed Tesla in global EV sales in Q4 2024 -- from entering the US market at price points that would undercut domestic production.
"The 100% tariff on Chinese EVs is not a trade barrier in the traditional sense -- it is a de facto import ban. No business model survives a 112.5% duty rate on a mass-market consumer product. The policy objective is industrial protection, not revenue generation." -- Scott Kennedy, Senior Adviser, Center for Strategic and International Studies (CSIS)
Does the 100% tariff apply to EVs manufactured in third countries?
The Section 301 tariff applies based on country of origin, not country of export. A BYD vehicle manufactured at BYD's plant in Thailand or Hungary would not be subject to the 100% Section 301 rate, provided it meets the rules of origin for substantial transformation in the manufacturing country. However, US Customs and Border Protection scrutinizes "transhipment" arrangements where minimal processing is performed in a third country solely to circumvent origin-based tariffs. Assembly operations that do not constitute substantial transformation will not change the country of origin designation.
This distinction is driving Chinese automakers to invest heavily in manufacturing facilities outside China. BYD is constructing plants in Thailand, Hungary, Brazil, Turkey, and Indonesia.
However, any EV imported from these facilities would still face the standard 2.5% MFN rate plus the 10% Section 122 tariff, and potentially Section 232 auto tariffs if those are implemented.
"The 100% tariff on Chinese EVs is the single most consequential trade action affecting the global auto industry. It is accelerating a fragmentation of the EV supply chain into regional blocs, with different cost structures and different consumer outcomes in each market." -- Simon Evenett, Professor of International Trade, University of St. Gallen
How Do EU Anti-Subsidy Duties on Chinese EVs Work?
The European Union took a different approach to Chinese EV imports. Rather than imposing a blanket tariff rate, the European Commission launched a formal anti-subsidy investigation in October 2023 under the EU's Trade Defence Regulation. The investigation concluded that Chinese EV manufacturers benefit from state subsidies that cause economic injury to EU producers, and definitive countervailing duties were imposed in October 2024.
What are the EU anti-subsidy duty rates by manufacturer?
The EU's countervailing duties are company-specific, based on the level of subsidization found during the investigation. These duties apply on top of the standard 10% MFN tariff on passenger vehicles.
| Manufacturer | Anti-Subsidy Duty | Total Duty (incl. 10% MFN) | Investigation Finding |
|---|---|---|---|
| BYD | 17.0% | 27.0% | Lower subsidy level; more market-oriented pricing |
| Geely (incl. Volvo, Polestar, Smart) | 18.8% | 28.8% | Moderate subsidy through land-use rights and tax benefits |
| SAIC (incl. MG) | 35.3% | 45.3% | Highest subsidy level; non-cooperation during investigation |
| Tesla (Shanghai Gigafactory) | 7.8% | 17.8% | Lowest rate; cooperated fully, fewer state subsidies |
| Other cooperating exporters | 20.7% | 30.7% | Weighted average of sampled companies |
| Non-cooperating exporters | 35.3% | 45.3% | Maximum rate applied as adverse inference |
SAIC received the highest duty rate in part because it refused to cooperate fully with the European Commission's investigation, triggering the "adverse inference" provision that allows investigators to apply the worst available data. The MG brand, owned by SAIC, is the most directly affected -- MG4 was the best-selling Chinese EV in Europe before the duties took effect.
Are the EU duties permanent?
The definitive anti-subsidy duties are imposed for an initial period of five years, subject to review. Interested parties can request an interim review if circumstances change materially. The European Commission can also initiate an expiry review near the end of the five-year period. In December 2024, the EU and China entered negotiations on a potential price undertaking -- a minimum import price agreement that would replace the countervailing duties -- but as of February 2026, no agreement has been reached.
The duties apply to battery electric vehicles classified under HS 8703.80. Plug-in hybrid electric vehicles (PHEVs) classified under other subheadings of HS 8703 are not currently subject to the anti-subsidy duties, though the Commission has indicated it may extend the investigation to PHEVs.
How Does the UK Tariff Regime Differ from the US and EU?
The United Kingdom applies the lowest EV tariff of the three major markets. The standard MFN duty rate on battery electric passenger vehicles is 2.5%, identical to the US base rate but without any additional Section 301 or anti-subsidy layers. The UK has not launched an anti-subsidy investigation into Chinese EVs, and there is no indication it plans to do so.
Does the UK-EU Trade and Cooperation Agreement affect EV tariffs?
The UK-EU Trade and Cooperation Agreement (TCA) provides for zero-tariff, zero-quota trade in goods that meet the rules of origin. For electric vehicles, the TCA originally required that by January 1, 2027, at least 55% of the vehicle's value (excluding the battery) and 65% of the battery's value must originate in the UK or EU.
In practice, this has created tension for manufacturers who source batteries from China, South Korea, or Japan. In December 2025, the UK and EU agreed to extend the transitional provisions, delaying the full battery origin requirements until 2028.
How does CPTPP benefit UK EV imports?
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which the UK acceded to on December 15, 2024, provides preferential tariff treatment for EVs manufactured in CPTPP member countries. For Japanese-manufactured EVs -- from companies like Nissan, Toyota, and Honda -- the CPTPP preferential rate eliminates or significantly reduces the 2.5% duty, provided the vehicles meet the agreement's rules of origin.
| Origin | UK MFN Rate | UK CPTPP Rate | Notes |
|---|---|---|---|
| Japan | 2.5% | 0% (phased) | Nissan Leaf, Toyota bZ4X, Honda e:Ny1 |
| Malaysia | 2.5% | 0% (phased) | Emerging EV manufacturing hub |
| China | 2.5% | N/A | China is not a CPTPP member |
| EU | 0% (TCA) | N/A | Subject to rules of origin |
| South Korea | 2.5% | N/A | UK-Korea FTA provides separate preferences |
This gives the UK a unique position: it can import Japanese EVs at preferential rates through CPTPP while maintaining tariff-free access to European-manufactured EVs through the TCA -- creating the most open EV import market among the three jurisdictions.
How Do Battery and Charger Tariffs Affect the EV Supply Chain?
The tariff impact on electric vehicles extends far beyond the finished car. Lithium-ion batteries (HS 8507.60) and EV charging equipment (HS 8504) face their own tariff regimes, and these component-level duties cascade through the supply chain to increase the total landed cost of EV production.
Lithium-ion battery tariffs
| Jurisdiction | MFN Rate | Additional Tariff | Total on Chinese Origin |
|---|---|---|---|
| United States | 3.4% | 25% (Section 301, strategic) + 10% (Section 122) | ~38.4% |
| European Union | 1.3% | Under investigation | 1.3% (pending) |
| United Kingdom | 2.5% | None | 2.5% |
The US Section 301 tariff on lithium-ion EV batteries increased from 7.5% to 25% on January 1, 2025, as part of the same strategic sector review that raised EV tariffs to 100%. This 25% surcharge applies specifically to lithium-ion batteries for electric vehicles -- non-EV lithium-ion batteries (such as those used in consumer electronics) are subject to a lower Section 301 rate on List 4A. The distinction depends on the end-use classification declared at importation.
EV charger tariffs
EV charging equipment, classified under HS 8504 (electrical transformers and static converters), faces a separate tariff burden:
| Jurisdiction | MFN Rate | Additional Tariff | Total on Chinese Origin |
|---|---|---|---|
| United States | 0--2.7% | 25% (Section 301) + 10% (Section 122) | ~35--37.7% |
| European Union | 1.7% | None currently | 1.7% |
| United Kingdom | 0--2.5% | None | 0--2.5% |
The US imposed a 25% Section 301 tariff on EV chargers effective September 27, 2024, covering both AC Level 2 home chargers and DC fast charging stations. China manufactures an estimated 80% of the world's EV charging hardware.
This tariff directly increases infrastructure costs for the US EV charging buildout -- creating a tension between the administration's tariff policy and its stated goal of deploying 500,000 EV chargers by 2030 under the National Electric Vehicle Infrastructure (NEVI) program.
How Are These Tariffs Reshaping the Global EV Supply Chain?
The divergent tariff policies across the US, EU, and UK are producing measurable shifts in manufacturing investment, trade flows, and consumer pricing.
Manufacturing relocation
Chinese automakers are investing billions in manufacturing facilities outside China to circumvent origin-based tariffs. BYD's factory in Hungary -- the first Chinese-owned EV plant in the EU -- is expected to begin production in late 2026. Once operational, vehicles produced there will be exempt from EU anti-subsidy duties because the country of origin will be Hungary, not China.
Similarly, BYD's Thailand plant serves markets across Southeast Asia and potentially the UK through ASEAN trade agreements.
Price impact on consumers
The tariff differential creates vastly different pricing outcomes for consumers in each market:
| Vehicle Example | Factory Price (est.) | US Import Price | EU Import Price (BYD rate) | UK Import Price |
|---|---|---|---|---|
| BYD Seal (mid-range EV) | $25,000 | $53,125 (+112.5%) | $31,750 (+27.0%) | $25,625 (+2.5%) |
| MG4 (SAIC, budget EV) | $18,000 | $38,250 (+112.5%) | $26,154 (+45.3%) | $18,450 (+2.5%) |
| Tesla Model 3 (Shanghai) | $28,000 | $59,500 (+112.5%) | $32,984 (+17.8%) | $28,700 (+2.5%) |
These price differences explain why Chinese EV brands have gained significant market share in the UK and (despite higher duties) in the EU, while remaining entirely absent from the US market.
"The tariff divergence across the US, EU, and UK is creating three separate EV markets with completely different competitive dynamics. American consumers are paying more for fewer choices, while British consumers have access to the most competitively priced EVs of any major economy." -- Julia Poliscanova, Senior Director, Vehicles and E-Mobility, Transport & Environment
Battery supply chain restructuring
The 25% US tariff on lithium-ion batteries is accelerating domestic battery manufacturing investment. The Inflation Reduction Act's $7,500 consumer tax credit requires increasing percentages of battery components and critical minerals to be sourced from North America or FTA partners -- creating a parallel incentive to onshore battery production. However, the tariff on imported batteries raises production costs for US automakers who still rely on Chinese cell suppliers during the transition period.
What Are the Key Tariff Code Classifications for EVs and Components?
Correct classification is essential for determining the applicable tariff rate. EV-related products span several HS chapters:
| Product | HS Code | Chapter | US MFN | EU MFN | UK MFN |
|---|---|---|---|---|---|
| Battery electric passenger vehicles | 8703.80 | 87 -- Vehicles | 2.5% | 10% | 2.5% |
| Plug-in hybrid electric vehicles | 8703.60/.70 | 87 -- Vehicles | 2.5% | 10% | 2.5% |
| Lithium-ion batteries | 8507.60 | 85 -- Electrical machinery | 3.4% | 1.3% | 2.5% |
| EV chargers (static converters) | 8504.40 | 85 -- Electrical machinery | 0--2.7% | 1.7% | 0--2.5% |
| Electric motors for vehicles | 8501.31-53 | 85 -- Electrical machinery | 2.4--3.3% | 2--3.8% | 0--2.5% |
| Charging cables | 8544.42 | 85 -- Electrical machinery | 3.5% | 3.3% | 0% |
Classification pitfalls include the distinction between EVs (8703.80) and electric commercial vehicles (8704), the difference between EV-specific batteries and general-purpose lithium-ion cells, and the classification of integrated charging systems that combine transformer and converter functions. For guidance on the classification process, see our step-by-step HS code classification guide.
What Changes Should Importers Watch for in 2026 and Beyond?
The EV tariff landscape is evolving rapidly. Several pending developments could significantly alter the competitive dynamics:
| Timeline | Potential Change | Impact |
|---|---|---|
| Mid-July 2026 | US Section 122 tariff expires (150-day limit) | Removes 10% layer unless Congress extends |
| Late 2026 | BYD Hungary plant opens | EU-origin EVs exempt from anti-subsidy duties |
| 2027 | EU rules of origin tightening (battery content) | May restrict UK-EU zero-tariff trade for EVs with non-EU batteries |
| 2027 | HS 2027 revision | Potential reclassification of EV types and components |
| Ongoing | EU-China price undertaking negotiations | Could replace anti-subsidy duties with minimum prices |
| Ongoing | US Section 232 auto tariff expansion | Could add 25% on all imported vehicles regardless of origin |
Importers should also monitor the de minimis threshold changes that could affect low-value EV component shipments, and track Section 301 tariff developments in our comprehensive US tariffs on China guide.
Summary and Next Steps
The bottom line: Three major markets, three radically different approaches to EV tariffs. The US has erected a 112.5% wall against Chinese EVs through Section 301, the EU has calibrated manufacturer-specific anti-subsidy duties between 17.8% and 45.3%, and the UK maintains a 2.5% open-door policy enhanced by CPTPP benefits for Japanese imports. These policy choices are not just trade technicalities -- they are determining which consumers get access to affordable electric vehicles, where billions of dollars in manufacturing investment are directed, and how quickly the global transition to electric mobility can proceed.
To check the current tariff rates on EVs and components for your specific import scenario, use the HSRates Duty Calculator. For HS code classification assistance, search our HS Code Lookup or browse the full HS code directory.
FAQ
What is the total US tariff on a Chinese-made electric vehicle?
The total duty on a Chinese-origin battery electric vehicle (HS 8703.80) reaches approximately 112.5% as of February 2026: 2.5% MFN duty, 100% Section 301 tariff, and 10% Section 122 global tariff. A vehicle with a $25,000 customs value would incur $28,125 in duties alone.
Does the EU anti-subsidy duty apply to all Chinese EV brands equally?
No. The EU imposed manufacturer-specific rates based on subsidization levels: BYD pays 17.0%, Geely (including Volvo and Polestar) pays 18.8%, SAIC (including MG) pays 35.3%, and Tesla Shanghai pays 7.8%. Non-cooperating companies pay the maximum 35.3% rate. All rates apply on top of the 10% MFN tariff.
Can Chinese automakers avoid tariffs by manufacturing in third countries?
Yes, in principle. Tariffs based on country of origin apply to where the vehicle was manufactured, not company headquarters. BYD vehicles from its Hungary plant would be EU-origin and exempt from anti-subsidy duties. However, customs authorities scrutinize "circumvention" arrangements where minimal processing occurs solely to change the origin. Genuine substantial transformation is required.
Are lithium-ion battery tariffs separate from the EV tariff?
Yes. Lithium-ion batteries (HS 8507.60) are classified separately from vehicles. In the US, Chinese-origin EV batteries face approximately 38.4% total duty (3.4% MFN + 25% Section 301 + 10% Section 122). When a complete EV is imported with its battery installed, the vehicle classification (HS 8703.80) applies to the full value. The separate battery tariff matters for replacement batteries, packs for domestic assembly, and energy storage modules.
How does the UK's CPTPP membership affect EV imports?
The UK's CPTPP accession (December 15, 2024) provides preferential rates for EVs from member countries, most significantly Japan. Japanese EVs meeting CPTPP rules of origin can enter the UK at reduced or zero duty, benefiting models like the Nissan Leaf and Toyota bZ4X. China is not a CPTPP member, but at 2.5% MFN, the UK already charges the lowest EV tariff among the three major markets.
This guide reflects tariff rates and policy developments as of February 21, 2026. EV tariff policy is evolving rapidly across all three jurisdictions. For product-specific duty calculations, use the HSRates Duty Calculator. For HS code classification assistance, use the HS Code Search.
Sources & References
- USTR Section 301 Tariff Actions -- Four-Year Review
- European Commission -- Anti-Subsidy Investigation on Battery Electric Vehicles from China
- EU Official Journal (OJ) -- Definitive Countervailing Duties on BEVs
- UK Trade Tariff -- Commodity Code 8703.80
- Transport & Environment -- Chinese EV Tariff Impact Assessment
- CMS (Cameron McKenna Nabarro Olswang) Law -- EU Anti-Subsidy Duties on Chinese Electric Vehicles
- CPTPP -- UK Accession Protocol
- US International Trade Commission -- Harmonized Tariff Schedule Chapter 87