EU To Impose Tariffs As High As 48% On Chinese Electric Vehicles
About one month after President Joe Biden slapped new tariffs on Chinese electric vehicles, batteries, solar panels, steel, aluminum, and medical equipment, the European Commission has followed suit with its own set of tariffs.
The Commission announced Wednesday that it would apply additional duties of between 17% and 38% on imported Chinese EVs beginning early next month. The duties will be applied to an existing 10% tariff on all Chinese EVs, which indicates some vehicles will have duties as high as 48%.
„As part of its ongoing investigation, the Commission has provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from unfair subsidization, which is causing a threat of economic injury to EU BEV producers,” the EU wrote in a press release.
The bloc formally notified BYD Co., Geely Automobile Holdings Ltd., and SAIC Motor Corp. of the incoming tariffs implemented on July 4, a symbolic date for America’s Independence Day.
According to the bloc, new individual tariff amounts total:
- BYD: 17.4%;
- Geely: 20%;
- and SAIC: 38.1%.
The press release indicated carmakers not sampled by the Commission would face a duty rate of 21%, while producers that refused to cooperate with the investigation would be hit with a 38.1% duty.
Meanwhile, a spokesperson for the Chinese Ministry of Commerce has responded quickly. They urged the bloc to reverse course on the additional EV duties and instead handle the economic and trade disputes through dialogue and consultation.
The spokesperson also noted that the EU’s move jeopardizes China’s EV industry’s rights and interests and creates snarls in the global auto industry supply chain. They added that Beijing would closely monitor the situation and „resolutely” take all necessary measures to safeguard the rights and interests of Chinese firms.
The move by the EU protects domestic automakers, which have been challenged by a flood of low-cost EVs from Chinese rivals.
And now the bloc waits. As a possible retaliation from China could be imminent.
Tyler Durden
Thu, 06/13/2024 – 02:45