The European Commission will notify carmakers on Wednesday that it will provisionally apply additional duties of up to 25 per cent on imported Chinese electric vehicles from next month, the Financial Times reported, citing people familiar with the matter.
Analysts have said they expect tariffs of between 10 per cent and 25 per cent on Chinese EVs, a move likely to prompt possible retaliation from Beijing. The European Commission has said Chinese EVs receive excessive subsidies.
The EU and China’s foreign affairs ministry did not immediately respond to Reuters‘ requests for comment.
Less than a month after Washington quadrupled duties for Chinese EVs to 100 per cent, Brussels is expected to set almost certainly far lower tariffs for imports from Chinese makers such as BYD 002594.SZ and Geely 0175.HK as well as Western producers such as Tesla TSLA.O that export cars from China to Europe.
BYD, Geely, SAIC and Tesla did not immediately respond to Reuters‘ queries on the report.
The move comes as European carmakers are being challenged by an influx of lower-cost EVs from Chinese rivals.
China has rebuked the EU over the anti-subsidy investigation, urged cooperation and lobbied individual EU countries, but not fully spelled out what its response to tariffs would be.
China’s foreign ministry said China will take all measures to “firmly defend” its lawful rights and interests after a report said that EU will impose tariffs of up to 25 per cent on imported Chinese electric vehicles (EVs).
EU’s additional tariffs on Chinese EVs violates market economy principals and will eventually undermine Europe’s own interest, spokesperson Lin Jian said at a regular press conference on Wednesday.
There we go. EU to impose additional duties of up to 25% on Chinese electric cars, on top of the existing 10%.
The level is higher than the average 19% countervailing duties the EU imposes after such investigations. Bold move by the Commission, faced with German resistance. 1/
— Sander Tordoir (@SanderTordoir) June 12, 2024
