The EU offers China a reprieve from tariffs on electric vehicles until July 4th.
On Wednesday, the European Union Commission revealed the results of their ongoing competition investigation, stating that electric vehicles powered by batteries in China are receiving unfair government subsidies. This could potentially harm EU manufacturers economically.
If negotiations with China fail to produce a resolution, the current tariff of 10% on Chinese electric cars may be raised considerably. The European Commission estimates that if no agreement is reached, the additional surcharge for BYD would be 17.4%, Geely 20%, and SAIC 38.1%.
According to the Commission, these temporary compensation tariffs will be implemented as of July 4. Each EU state has the authority to choose the method for the security deposit.
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The EU Commission expressed concerns about China's unfair subsidies for electric vehicles, potentially impacting EU manufacturers during the grace period leading up to July 4th. If negotiations with China fail, the current 10% tariff on Chinese electric cars could increase significantly, affecting brands like BYD (17.4%), Geely (20%), and SAIC (38.1%). The EU Commission has authorized each member state to decide on the method for collecting the security deposit starting from the mentioned July 4th. The federal government should also consider providing a subsidy for e-cars to remain competitive during this period. Despite these challenges, the EU and its commission continue to advocate for fair trade practices with its trading partners like China.
