EU threatens China EVs with tariffs of up to 38%

The European Union has “provisionally concluded” that Chinese electric vehicle manufacturers will face tariffs from 4th July “should discussions with Chinese authorities not lead to an effective solution”.


The EU’s announcement comes as it continues an investigation into what it claims is a flood of cheap, government-subsidised Chinese cars into the trade bloc.


China alleged the tariffs violated international trade rules and described the investigation as “protectionism”.


EV makers who co-operated with the investigation, which the EU’s governing European Commission launched in October, will face an average 21% duty, while those who did not will face one of 38.1%.


Meanwhile, specific charges will apply to three companies:


BYD: 17.4%


Geely: 20%


SAIC: 38.1%


Non-Chinese car companies who produce some EVs in China, including EU-based ones like BMW, will also be affected.


The commission said Tesla may receive an “individually calculated duty rate” because of a specific request it had made.


These charges would come on top of the current rate of 10% tariff levied on all electric cars produced in China.


The EU’s intervention comes after the US made the much bolder move of raising its tariff on Chinese electric cars from 25% to 100% last month.

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