- EU considers retrospective application of penalties on electric cars
The EU Commission has shown itself fundamentally open to retroactively applying tariffs on Chinese electric vehicles. Provided the legal prerequisites are met, the possibility of retroactive collection will be discussed, a spokesperson for the German Press Agency said in Brussels. They confirmed that the date of March 7 of this year is under consideration. Since then, new battery-powered electric vehicles for passenger transport originating from China have had to be recorded by customs in the EU.
The EU introduced provisional tariffs on the import of electric vehicles from China on July 5, following an investigation that found the entire value chain in China to be heavily subsidized, posing a significant threat to the industry in the EU. These tariffs affect companies like BYD, which sponsored the UEFA European Football Championship on a large scale.
The final introduction of the tariffs is set to occur after a pending vote by government representatives of EU states by November 5, unless China makes surprising concessions. Until then, the tariffs do not have to be paid, but security deposits for them must be made.
Tariffs are viewed critically in Germany
The commission spokesperson said on Friday: "The EU continues consultations with China on the findings and an acceptable solution for both sides." Both sides have agreed to cooperate based on facts and full respect for the rules of the World Trade Organization. However, any negotiated solution must, in the view of the EU Commission, lead to the elimination of harmful subsidies.
Tariffs are particularly criticized in Germany, mainly due to potential Chinese retaliatory measures that could particularly affect German automakers. However, it is currently considered very unlikely in Brussels that there will be a sufficient majority among the member states for the final introduction of the tariffs. EU officials have recently stated that many experienced employees in German companies are aware that the automotive industry in Europe has little chance of survival without a tough approach to Chinese subsidy practices. However, public communication in Germany is often determined by executives who prioritize short- and medium-term profit.
The EU Commission's stance on retroactively applying tariffs on Chinese electric vehicles could impact various companies within the EU, including those that have received significant sponsorships, such as BYD. The ongoing consultations between the EU and China aim to find an acceptable solution that eliminates harmful subsidies in China.
