EU Imposes Provisional Duties Of As Much As 37.6% On Chinese EV Imports

The European Commission on Thursday imposed additional tariffs of up to 37.6% on EV imports from China over concerns that cheaper EVs from China which benefit from state subsidies will push domestic players out of the market.

What Happened: The commission has imposed provisional duties of 17.4% on BYD EV imports, 19.9% on Geely, and 37.6% on EVs from SAIC. The tariffs are on top of the 10% duty levied on all EV imports from China.

The provisional subsidies come 9 months after the commissions started an anti-subsidy probe on passenger EVs imported from China. Other EV makers who cooperated in the investigation will be subject to 20.8% weighted average duty, the commission said in a statement on Thursday.

The new tariffs will apply from Friday but are on a provisional basis for a maximum duration of four months until after the completion of the anti-subsidy investigation. Within the period, the commission will make a final decision on definitive duties that will typically apply for five years, the commission said.

Why It Matters: There are concerns among European automakers that China might hit back with duties of its own. China is the world’s largest auto market and retaliatory action could harm U.S. and UK automakers who are already strained in the geography due to heightened competition from domestic automakers.

Volkswagen, the biggest automaker in Europe, criticized the Commission’s move in a statement to Reuters saying that the negative impact of the decision will outweigh any benefits to the European and German auto industry.

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