EU Imposes 38% Tariffs On Chinese EVs

The European Commission has notified car makers that it would apply additional duties of up to 38.1% on imported Chinese electric vehicles starting next month, a move likely to draw possible retaliation from China, Philip Blenkinsop and Jan Strupczewski reported for Reuters.

The new tariffs will come on top of the existing EU tariff of 10%. I Photo: BYD Pampanga

Less than a month after Washington quadrupled duties for Chinese EVs to 100%, Brussels said it would set tariffs of 17.4% for BYD, 20% for Geely, and 38.1% for SAIC over what it said were excessive subsidies.

China's commerce ministry said it would closely monitor the development and resolutely take all necessary measures to safeguard the legitimate rights of Chinese companies, Disha Mishra and Abinaya Vijayaraghavan also reported for Reuters.

The EU provisional duties are set to apply by July 4, with the anti-subsidy investigation continuing until November 2, when definitive duties, typically for five years, could apply.

The commission said it would apply rates of 21% for companies deemed to have cooperated with the investigation and 38.1% for those it said had not. The new tariffs will come on top of the existing EU tariff of 10%.

Western producers such as Tesla and Bayerische Motoren Werke AG (BMW) that export cars from China to Europe were considered cooperating companies.