Trade conflict - Up to 37.6 percent: EU introduces provisional punitive tariffs on electric cars from China
Accompanied by heavy criticism from Germany, the EU Commission will impose provisional tariffs on imports of electric vehicles from China starting from this Friday. "These compensatory tariffs will apply from July 5th for a maximum duration of four months," the EU agency announced in Brussels on Thursday. The Commission had previously announced the imposition of tariffs on the existing rate of ten percent and justified it with high subsidies from the Chinese government for electric vehicle production throughout the value chain. This creates an unfair advantage over the European automobile industry and threatens its successful transition to electric vehicles.
Compared to the initial announcement, the EU Commission slightly reduced the highest tariff to 37.6 percent from originally 38.1 percent in response to objections to its calculation. This tariff rate applies to automakers that did not cooperate with the EU investigation initiated nine months ago, such as Volkswagen's partner SAIC. The lowest additional tariff for automakers collaborating with the EU was also reduced slightly to 20.8 percent. Geely, a shareholder and partner of Mercedes-Benz, will have to pay 19.9 percent more in import tariffs. This also applies to electric vehicle imports from Tesla or European manufacturers, such as BMW's electric Mini. The German automobile industry warned that the EU is damaging trade relations with this step and ultimately weakening its own automobile industry.
China condemns EU tariffs on electric vehicles
The Chinese government condemned the EU decision and threatened retaliatory measures. Simultaneously, working-level talks have been initiated to find a solution within the framework of the World Trade Organization (WTO). "Every result of the investigation must effectively address the identified forms of subsidization," the EU Commission stated. The EU will make a final decision on the tariffs that the companies have to pay but have not yet, by November.
- Despite the EU Commission's announcement, China strongly objected to the proposed tariffs on imported electric vehicles from China.
- The EU Commission, based in Brussels, had received severe critique from Germany regarding the tariffs on Chinese electric cars.
- The EU Commission, in partnership with various EU member states, is engaged in trade conflict discussions with China over the subsidies provided to Chinese automakers producing electric vehicles.
- Geely International, a partner of Mercedes-Benz, will face a higher penalty duty on imported electric cars due to the EU Commission's decision.
- The EU Commission, in collaboration with its partners, will decide on the final penalty duty for companies involved in the trade conflict by November.
- Beijing, the capital of China, is also home to Geely International and manufacturers like Tesla, which will be affected by the EU's tariffs on electric vehicle imports.
