EU to impose provisional tariffs on Chinese EV imports

Starting July 5, the European Union will implement provisional tariffs on electric vehicle imports from China, with rates potentially reaching up to 48 percent. Definitive duties could be established by November, marking a significant step that may heighten trade tensions with Beijing.

In a July 4th news release, the EU confirmed its decision under an ongoing anti-subsidy investigation, stating that provisional duties would be imposed on three Chinese manufacturers selected for the investigation.

SAIC Motor, known for its MG brand, will face a 37.6% tariff in addition to the existing 10% rate. BYD and Geely will incur extra charges of 17.4% and 19.9%, respectively. Other Chinese battery electric vehicle (BEV) producers that cooperated in the investigation but were not specifically sampled will be subject to a 20.8% weighted average duty. Non-cooperating companies will face a 37.6% duty.

The EU statement noted that: “Consultations with the Chinese government have intensified in recent weeks, following an exchange of views between Executive Vice-President Valdis Dombrovskis and Chinese Trade Minister Wang Wentao.

“Contacts continue at technical level with a view to reaching a WTO-compatible solution, which adequately addresses the concerns raised by the European Union.”

The provisional duties will take effect on Friday. Definitive duties will start in November unless the two sides reach an alternative solution or a qualified majority of EU member states blocks the final decision.