EU revises tariff rates set to hit EVs from China
Tariffs Relevant Earlier This Month Chinese Car Notified The Makers Mission The The About European
The EU marginally revised its proposed tariffs on electric vehicles imported from China after receiving more information from the affected companies, according to a person familiar with the matter who spoke on condition of anonymity.
The new provisional rates — which will come on top of the existing 10% duty — include other EV producers in China that cooperated with the investigation but have not been sampled. They will be subject to a weighted average duty of 20.8%, while firms that did not cooperate face an additional 37.6% levy.
The European Commission, the EU’s executive arm, notified the companies earlier this month about the tariffs. The announcement followed an investigation into the subsidies that China and its state-backed banks have given to the benefit of the manufacturers.
The provisional tariffs are set to be introduced on July 4 with definitive duties kicking in by November. Tesla may receive an individually calculated duty rate at that definitive stage following a request to be sampled.
China has threatened to retaliate and has launched a targeted anti-dumping probe on pork imports. The findings of an investigation into EU spirits are also due in the coming months. Beijing has warned it could hit agricultural goods, aviation, and cars with large engines.
Several carmakers and EU members including Germany have been pushing the EU and China to negotiate. The two sides are now consulting on a way forward but for the EU any solution has to be grounded in World Trade Organization rules, and address the underlying issue.
Beijing has looked to transform discussions into a barter, and has been trying to divide EU members by pressuring them bilaterally, Bloomberg previously reported.
The provisional duties are being introduced by a guarantee, and would be collected only if and when definitive duties are imposed, the EU said in a statement last month.
- Bloomberg