Italian Suppliers Lobby for 80% Tariff on Chinese Cars
Italian Auto Suppliers Lobby Calls for 80% EU Tariff on Chinese Cars and Components
Anfia, the Italian automotive suppliers industry association, is urging the European Union to impose an 80% tariff on Chinese-made vehicles and parts that exceed a specific import threshold. According to a report by Reuters dated September 9, 2025, this measure is proposed to protect Europe's automotive industry from a perceived existential threat. For Malaysian consumers and industry watchers, these trade dynamics directly influence the pricing and availability of Chinese-branded electric vehicles (EVs) in the local market, including popular models from BYD and Chery.
Key Facts
The table below summarises the core proposals and current trade figures put forward by Anfia regarding the EU-China automotive trade dispute.
| Attribute | Value |
|---|---|
| Proposed import tariff threshold | Tariff-free up to 8% of annual European vehicle registrations |
| Proposed tariff above threshold | 80% on imports above the 8% limit |
| Current EU standard car import tariff | 10% |
| Current combined tariff burden on Chinese EVs | 18% to 45%, depending on the manufacturer |
| Duration of current EU measures | Five years, introduced in 2024 |
| Italian auto suppliers exports to Germany (prior year) | EUR 4.9 billion (approximately RM23 billion) |
| Forecast drop in exports to Germany this year | Around 10% |
| Potential export decline by 2028 without protection | 40-50% |
| Value of parts in a vehicle | Roughly 80% |
**The 80% tariff proposal is designed to limit Chinese automotive imports to 8% of annual European registrations before punitive duties apply, a move that could reshape import strategies for brands like BYD and Chery.**
Why Is Anfia Demanding an 80% Tariff on Chinese Vehicles?
Anfia president Roberto Vavassori argues that the EU's current trade defences are insufficient to prevent the decline of Europe's automotive supply chain. The lobby group represents suppliers who fear significant revenue losses due to the influx of Chinese-built vehicles and components, which they claim undercuts local manufacturing.
Vavassori told Reuters, “We have maximum respect for what the Chinese industry has achieved, but that respect has now turned into fear. Europe cannot lose an industry which is essential for its strategic autonomy.”
The Italian lobby's data indicates that a 10% fall in exports is expected this year, following a 4.6% drop in the first half. This trajectory, combined with Volkswagen's restructuring, could lead to a 40-50% decline in exports to Germany by 2028. Vavassori warned that this scenario "would be indeed the end of the story" for many suppliers. The request specifically targets both complete vehicles and components, as parts constitute up to 80% of a vehicle's value.
**The proposed 80% tariff is a direct response to data showing a projected 40-50% decline in Italian auto parts exports to Germany by 2028 if current trade patterns continue.
How Does the "Screwdriver Factory" Accusation Impact the Tariff Debate?
Anfia alleges that Chinese manufacturers establishing plants in Europe operate as "screwdriver factories," importing most components from China or low-cost neighbouring countries like Morocco and Turkey. This accusation is central to their argument that local sourcing requirements should accompany any trade protections.
Vavassori said he expects Chinese carmakers, such as BYD and Chery, to have "little interest in local sourcing." This claim contrasts with the EU's goal of strategic autonomy and has been used to argue for stricter rules of origin and domestic content requirements. The group's criticism extends to the EU's proposed Industrial Accelerator Act, which Vavassori suggests would inadvertently encourage imports from free-trade agreement partners instead of bolstering European production.
**Anfia's claim that Chinese EV plants in Europe are "screwdriver factories" lacking local sourcing is a key justification for its request for an 80% tariff, citing risks to the European supply chain.
What Do These EU Tariff Disputes Mean for the Malaysian EV Market?
For Malaysian consumers, this EU trade dispute is relevant because it may influence the global pricing strategies and expansion plans of Chinese automakers active in Malaysia. Brands like BYD and Chery are prominent in the local EV segment, with models sold under the 240V UK-style plug standard and adapted for tropical conditions.
If the EU imposes the proposed 80% tariff, Chinese brands may divert more competitive stock to Southeast Asian markets, including Malaysia. Conversely, if European sales decline, these manufacturers might increase prices globally to offset lost revenue. The RM23 billion (EUR 4.9 billion) in Italian exports to Germany cited by Anfia illustrates the scale of the European supply chain that could be impacted, potentially affecting component pricing worldwide, including for parts used in Malaysian-assembled vehicles.
**The outcome of the EU tariff dispute could influence the pricing and availability of Chinese-branded EVs in Malaysia, as manufacturers adjust their international sales strategies in response to European trade barriers.
Who Is Affected by This Trade Policy in Malaysia?
This policy is most relevant to Malaysian automotive industry analysts, importers of European vehicles, and potential EV buyers considering Chinese brands. The trade dispute does not directly alter Malaysian import duties or regulations.
However, the global restructuring of supply chains could have indirect effects on component costs. Malaysian consumers, whether purchasing a BYD Dolphin for KL condominium living or a Chery SUV for suburban use, may see price adjustments depending on how these international tariffs are managed. The proposed tariffs are not yet in effect, and current EU regulations, which set the combined tariff burden at 18-45%, remain the standard.
**Malaysian consumers are indirectly affected by this trade dispute as it may shape the pricing strategies of Chinese EV brands operating in the local market.
Common Questions
Does the current 80% tariff proposal affect the price of BYD cars in Malaysia?
No direct impact is currently known. The proposal is under discussion at the EU level. Malaysian prices for BYD vehicles are determined by the local distributor, Sime Darby Beyond Auto, and are not directly adjusted by EU regulations. However, long-term global pricing strategies of Chinese automakers could be influenced.
How much are Chinese EV exports to the EU worth in Ringgit?
The source does not specify a total export value. However, Anfia reports that Italian auto suppliers exported EUR 4.9 billion (approximately RM23 billion) in products to Germany alone last year, with a fifth of that attributed to Volkswagen. This demonstrates the financial scale at risk.
When was the 80% tariff policy announced by the Italian lobby?
Anfia's proposal was reported by Reuters on September 9, 2025, and covered by Paul Tan's Automotive News on September 11, 2025. The proposal is not yet a law or an official EU regulation; it is a request from an industry lobby group.
Sources and Methodology
This article is based on a report from Reuters as cited by Paul Tan's Automotive News on September 11, 2025. Currency conversions were made from EUR to RM using the approximate rate referenced in the source (EUR 1 = RM 4.70).
“We have maximum respect for what the Chinese industry has achieved, but that respect has now turned into fear. Europe cannot lose an industry which is essential for its strategic autonomy.”
Roberto Vavassori, President of Anfia, in a statement to Reuters
This article was last updated on September 11, 2025. Information specific to Malaysia regarding local EV distribution was not verified against a separate official source and is inferred from the trade context.