These tariffs will apply for five years, adding to the base 10% tariff that the EU already imposes on cars.
This week, the European Union's new preliminary tariffs on Chinese electric vehicles will become official, even though negotiations between the bloc and Beijing are still ongoing to find an alternative solution.
The European Commission's investigation found that China's battery electric vehicle (BEV) industry benefited from undue subsidies, leading to the imposition of preliminary tariffs earlier this year. The final tariffs, which will range from 17% to more than 35%, were announced on Monday and will take effect on Wednesday.
In parallel, the EU and China are working to find alternative solutions that are compatible with the World Trade Organisation (WTO) and that effectively address the issues identified in the investigation. This investigation revealed that the BEV value chain in China benefits from unfair subsidies, which represents an economic threat to BEV producers in the EU.
Valdis Dombrovskis, Executive Vice-President of the European Commission, stressed that the EU welcomes competition, including in the electric vehicle sector, but it must be based on fairness and fair trade practices. He also stressed that the measures taken are proportionate and targeted following thorough research.
On the other hand, the United States, which has also imposed tariffs on Chinese electric vehicles under Section 301 of the Trade Act of 1974, has backed the EU action. US Trade Representative Katherine Tai called the European tariffs an “important first step” to address China’s uneven trade policies.
Beijing has challenged the EU tariffs at the WTO and has raised tariffs on European brandy, as well as launching investigations into imports of pork and dairy products from the bloc, which is widely seen as retaliation. The EU has indicated it will challenge the new brandy tariffs at the WTO. In addition to the EU, countries including the US, Canada and Turkey are also facing WTO disputes initiated by China over measures on electric vehicles.
Source: EU duties on Chinese EVs to take effect as talks continue | InsideTrade.com
