EU Imposes Duties on Chinese Electric Cars: What You Need to Know

The European Union has officially confirmed that duties will be imposed on electric cars produced in China starting from July 5, 2024. This decision, which was hoped to be reversed by Germany, will come into full effect by November unless an alternative solution is found between Europe and China or a qualified majority of EU member states blocks the decision.

Valdis Dombrovskis, the executive vice-president of the European Commission, stated, “We are continuing to engage intensively with China for a mutually acceptable solution. Any negotiated outcome of our investigation must clearly and comprehensively address the EU’s concerns and comply with WTO rules.”

On the other hand, China has initiated an anti-dumping investigation into EU imports of pork and spirits and is considering retaliatory measures against European carmakers.

The duties imposed on Chinese electric car manufacturers will vary, with MG SAIC Motor facing a 37.6% tariff on top of the current 10% rate, while Geely and BYD will face additional tariffs of 19.9% and 17.4%, respectively. Other cooperating companies will face a weighted average duty of 20.8%, while non-cooperating companies will face an additional 37.6% tax.

The European Commission has emphasized the importance of reaching a WTO-compatible solution with China to address the concerns raised by the EU regarding harmful forms of subsidization.

Overall, the situation between Europe and China regarding duties on electric cars is still ongoing, with negotiations and discussions at various levels to find a mutually acceptable solution. Stay tuned for further updates on this developing issue.