Brussels (The Brussels Morning Newspaper) – The European Commission disclosed its draft conclusion to “impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China.”
The European Union on 20 August 2024 stated planned tariffs on Tesla vehicles being imported from China would be trimmed to 9% from 20.8%, while also decreasing the number of scheduled import duties on other Chinese electric vehicle companies.
Why Did the EU Decide to Adjust Tariff Rates?
In June, the EU stated it would hit higher tariffs on Chinese electric vehicle imports, which it discovered benefit “heavily from unfair subsidies” and carry a “threat of economic injury” to EV producers in the EU. The European Commission revealed a preliminary conclusion that the battery-electric vehicles value chain in China “benefits from unfair subsidisation” and enunciated that it is in the EU’s interest to set “provisional countervailing duties” on BEV imports from China.
The EU Commission announced its draft decision to “impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China.” The regulatory body stated that after receiving comments from interested parties on its intended tariffs, it would make a “slight adjustment of the offered duty rates based on substantiated statements on the provisional measures.”
What Are the New Import Duties for Chinese Electric Vehicles?
Electric vehicles produced by Tesla in China will now meet duties of 9% on imports to the EU. That is down from an expected rate of 20.8%, which the EU signposted in a decision in July. The EU stated it decided to grant Tesla its own reduced individual duty rate as an exporter from China.
What Are the Implications of the EU’s Tariff Changes on EVs?
It comes after Elon Musk’s electric vehicle architect made a “substantiated request” to the EU that intended tariffs on its China-made EVs be recalculated to image specific subsidies the company receives in China.
BYD, the Warren Buffett-backed EV company, saw its tariff rate decrease from 17.4% to 17%; Geely from 19.9% to 19.3%, and SAIC from 37.6% to 36.3%. Other firms cooperating with the EU in its probe into China’s heavy subsidization of EVs, will meet tariffs of 21.3%, the Commission stated. This is more elevated than the 20.8% rate collaborating companies would have faced under the EU’s previous July decision. For those not collaborating, they will be smashed with 36.3% import duties. That is down from 37.6% earlier.
