European Union countries are likely to back the introduction of tariffs on imported Chinese electric vehicles in November, EU Trade Commissioner Valdis Dombrovskis said in a statement, according to Report, which cites The Financial Times.
Dombrovskis emphasized that EU member states recognize the need to protect the bloc's automotive industry as China's share in the electric vehicle market grows at an alarming rate. He described this as a problem that needs to be addressed urgently. While acknowledging that China is the EU's second-largest trading partner and expressing interest in cooperation, the commissioner characterized the bilateral trade relations as "unbalanced".
The European Commission had previously stated that it does not aim to introduce import tariffs on electric cars from China arbitrarily. Instead, the measure is intended to correct the unfair situation arising from Chinese government subsidies, which has created a disparity between manufacturers in China and Europe.
Starting from July 4, the Commission has implemented temporary preliminary countervailing duties on electric vehicle imports from China. These preliminary tariffs require suppliers to provide bank guarantees rather than actually pay the duties at this stage. The actual collection of tariffs will commence if the EU makes a final decision to impose import tariffs, which could happen in the autumn. Until then, Brussels maintains that there is still an opportunity to negotiate with Beijing and resolve the issue.
The tariffs will range from 17.4% to 37.6%, depending on the manufacturer. Three Chinese producers will face the following duties: BYD: 17.4%; Geely: 19.9%; SAIC: 37.6%. Additionally, other electric vehicle manufacturers that cooperated in the investigation but were not included in the sample will be subject to a 20.8% tariff, while companies that did not cooperate will face tariffs of 37.6%. American manufacturer Tesla has requested the EU to calculate an individual import duty rate for its electric cars from China, which will be determined later.