Generally you are right.
The pallet trucks will be more expensive. About 20% I presume.
And the money from the extra duties will go to governments. As all customs duties and taxes.
The endusers will pay the price.

The question is: if the price is too high for preserving the domestic, european industry?

I am sure that European manufacturers are able to fullfil the market expectations. Now they are "strangled" by the import of cheap chinese trucks (and european taxes + other costs).
The production volume, when it raises, will cause the costs reduction. And probably the prices.

In Poland we have at least 3 manufacturers, who make pretty decent pallet trucks. The market prices (for the standard stuff) are on the level of 250-300 Euro net.
Chineese trucks are sold for 170-230 Euro net.
It means, that if the domestic manufacturers raise the production volume 20 to 30% this should result in costs/prices reduction and the difference will decrease.
The competiton from domestic and other manufacturers will keep the market prices under control.

Generally - IMHO this extra duty (if it happens) is not a tragedy.
It makes sense.