EU Imposes New Tariffs on Chinese Electric Vehicles

EU Imposes New Tariffs on Chinese Electric Vehicles

The European Commission (EC) has concluded that Chinese battery electric vehicles (BEVs) benefit from unfair subsidies, leading to the imposition of provisional import duties.

These new tariffs range from 17.4 percent to 38.1 percent, varying by manufacturer, and are in addition to the existing 10 percent tariffs on imported EVs.

These duties range from 17.4 percent to 38.1 percent, depending on the manufacturer, and are in addition to the existing 10 percent tariffs.

The EC has engaged Chinese authorities to discuss these findings and explore potential resolutions. Should these discussions fail, the new tariffs will be implemented on July 4.

Initially, these duties will be secured through methods determined by customs authorities in each EU Member State and will only be collected if definitive duties are later imposed.

The specific tariffs for sampled Chinese EV manufacturers are:

BYD: 17.4 percent

Geely: 20 percent

SAIC: 38.1 percent

Other cooperating Chinese BEV producers will face a weighted average duty of 21 percent, while non-cooperating producers will be subject to a residual duty of 38.1 percent. All these duties are on top of the existing 10 percent tariffs.

Chinese automakers that cooperated but were not sampled, such as Aiways, BMW Brilliance, Changan, Chery, Dongfeng, FAW, Great Wall Motor (GWM), JAC, Leapmotor, Nio, and Xpeng, will see their import duties rise to 31 percent starting in July.

Additionally, Teslas imported from China into the EU will also face a 21 percent tariff increase, but Tesla has requested an individual examination to potentially receive a different duty rate. This request is currently under review, with final decisions expected by November.

The affected Chinese EV brands importing into the EU include:

MG (SAIC)

Smart (Geely)

Polestar (Geely)

Ora (GWM)

BYD

Nio

Lotus (Geely)

LEVC (Geely)

Maxus (SAIC)

Aiways

Lynk&Co (Geely)

Dongfeng

Voyah (Dongfeng)

Changan

Xpeng (backed by Volkswagen)

Zeekr (Geely)

The EC initiated this anti-subsidy investigation on October 4, 2023, aiming to conclude it within 13 months. Provisional tariffs are to be published by July 4, with definitive measures decided four months later.

Tesla might receive a unique duty rate based on individual examination, and other Chinese manufacturers can also request reviews. The proposed duties will be shared with stakeholders and published on the EC’s website.