Italian lobby group calls for 80% EU tariff on Chinese cars and parts

By Giulio Piovaccari

MILAN, Sept 9 (Reuters) - The head of Italian auto suppliers lobby Anfia has urged the European Union to impose 80% tariffs on Chinese-made vehicles and parts above a certain threshold to safeguard Europe's car industry.

Anfia President Roberto Vavassori told Reuters that Chinese imports to the European Union should be tariff-free up to 8% of annual European vehicle registrations, but with an 80% tariff on imports above that limit.

It should cover both vehicles and components, he said, as parts account for roughly 80% of a vehicle's value.

"We have maximum respect for what the Chinese industry has achieved," Vavassori told Reuters. "But that respect has now turned into fear."

"Europe cannot lose an industry which is essential for its strategic autonomy."

His comments come days after Volkswagen approved a major restructuring in the face of slumping demand and increasing competition from China.

Figures from the European Automobile Manufacturers' Association (ACEA) showed that the share of Chinese-branded cars sold in the EU rose to top 9% in the first half of this year.

WORRIES OVER SUPPLY CHAIN

Vavassori said Italian automotive suppliers exported €4.9 billion ($5.7 billion) worth of products to Germany in 2025. Volkswagen accounted for up to 20% of that total, he added. 

The Anfia chief predicted exports could fall around 10% this year after dropping 4.6% in the first half, as European production contracts. But he warned Volkswagen's overhaul could mark the beginning of a wider industry shakeout.

Vavassori said Italian part exports could drop 40% to 50% by 2028 without protection from Chinese imports.

"That would be indeed the end of the story."

The EU imposes additional duties on Chinese-made electric vehicles on top of its standard 10% car import tariff, with the combined tariff burden ranging from roughly 18% to 45% depending on the manufacturer. The measures, introduced in 2024, are due to remain in force for five years.

Vavassori criticised the EU's proposed Industrial Accelerator Act, designed to support industrial investment, decarbonisation and local manufacturing, saying it could encourage imports from countries like Morocco or Turkey linked to the EU through free-trade agreements instead of strengthening European production.

"As it is written now, it accelerates nothing except the announced death of the automotive industry," he said.

Vavassori called into question Chinese carmakers' long-term commitment to building supply chains in Europe. 

Automakers such as BYD and Chery are moving production to Europe, but have little interest in local sourcing, he said.

Their factories in Europe "are screwdriver factories," Vavassori said, predicting Chinese manufacturers will keep importing most components from China or low-cost countries close to Europe.   

($1 = 0.8612 euros)

(Reporting by Giulio PiovaccariEditing by Keith Weir)