EU slaps tariffs on electric cars from China

The EU Commission imposed provisional tariffs Thursday on imports of electric cars made in China, stating unfair subsidies they receive, but hopes for a resolution rest on ongoing discussions with China. The decision comes nine months after the initiation of an ex officio anti-subsidy investigation, as a result of which the Commission has concluded that the BEV value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers. The investigation has also examined the likely consequences and impact of these measures on importers, users and consumers of BEVs in the EU.

Consultations with the Chinese government have intensified recently, following an exchange of views between EC 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. Any negotiated outcome to the investigation must be effective in addressing the injurious forms of subsidisation identified.

The individual duties applying to the three sampled Chinese producers are BYD: 17.4%; Geely: 19.9%; and SAIC: 37.6%. Other BEV producers in China, which cooperated in the investigation but were not sampled, are subject to the 20.8% weighted average duty. The duty for other non-cooperating companies is 37.6%. Compared to the rates pre-disclosed on 12 June 2024, provisional duties were adjusted slightly downwards based on comments on the accuracy of the calculations submitted by interested parties. All the detailed findings of the investigation are reflected in the Implementing Regulation which is now published in the Official Journal.

The provisional duties will apply as of 5 July 2024, for a maximum duration of four months. Within that timeframe, a final decision must be taken on definitive duties, through a vote by EU Member States. When adopted, this decision would make the duties definitive for a period of five years.

Various discussions and votes will now continue, after which, taking into account the comments by interested parties, the Commission will disclose its proposal for definitive measures, if any, and allow adequate time (10 days) for interested parties to comment. A binding vote will then be taken by the EU member states.

Source: EUbusiness