EU Takes Steps Towards Tariffs on Chinese Electric Cars

The European Union has advanced towards implementing new tariffs on Chinese electric cars by instructing automakers to secure guarantees from banks ensuring their ability to pay the taxes which are expected to be finalized in October. This development follows the EU’s announcement on June 12 regarding the imposition of additional tariffs ranging from 17 to 38 percent on electric vehicles imported from China.

An investigation conducted by the European Union revealed what officials in Brussels have described as unfair subsidies provided by the Chinese government to electric car manufacturers. In response, the Chinese government has refuted these claims, asserting that the competitive prices of electric cars manufactured in China are a result of robust competition and innovation rather than governmental subsidies.

Dialogue between the two parties commenced on June 22 with the aim of finding a resolution to the conflict. EU Trade Commissioner Valdis Dombrovskis stated, “We are continuing to engage intensively with China on a mutually acceptable solution.”

Under the provisional tariffs, automakers are required to furnish European countries with financial guarantees for the eventual payment, although the actual payment is not due at this stage. The provisional tariffs are determined based on the European Union’s assessments of the extent of government subsidies received by each Chinese manufacturer.

• SAIC Motor faces the highest tariff of 37.6 percent, attributed to limited disclosure regarding their subsidies.
• BYD is subject to a tariff of 17.4 percent.
• Geely has been assigned a tariff of 19.9 percent.