EU Marginally Revises Proposed Tariffs on Chinese EVs Amid Negotiations

The European Union (EU) has marginally revised its proposed tariffs on electric vehicles (EVs) imported from China with a minor adjustment after Chinese automakers provided more detailed information about their businesses as part of the EU’s anti-subsidy probe.

Revised Adjustments On Tariffs

In detail, the revised tariffs on Chinese automakers will see adjustments to the existing 10% duty. According to Bloomberg, SAIC Motor Corp’s tariff decreases slightly to 37.6% from 38.1%. Geely Automobile Holdings Ltd’s tariff lowered to 19.9% from 20%. Meanwhile, BYD’s tariff remains unchanged at 17.4%.

Moreover, other Chinese EV manufacturers that cooperated with the investigation but were not sampled will face a weighted average duty of 20.8%. As for other Chinese companies that did not cooperate, they will be subject to a higher 37.6% levy.

Since the announcement of China negotiating with the EU on the tariffs on Chinese EVs, these marginal reductions sends a glimmer of hope that the EU may still be open to more adjustments before the tariffs are set to take effect on July 4.

Mediating EU-China Trade Tensions

From the escalating tensions between the EU and China, Chinese EVs have been making headlines derived from tariff talks. In response to the EU’s actions, China aimed for retaliation by tariffs on imported gas vehicles from the EU. Notably, the situation has put European automakers including BMW, Volkswagen, and Porsche in a position that made them mediate and find a solution that satisfies both sides.

While the EU and China continue to engage in talks, it appears that China may be settling for a compromised solution rather than pushing for a complete abolishment of the new tariffs. The provisional duties are set to be introduced by guarantee on July 4, with definitive duties potentially kicking in by November.

As the EV landscape becomes vulnerable to the outcome of this trade dispute, the global market will continue to see Chinese EVs and the results that the negotiations will deliver in regards to adjustments. Both sides will be closely watching developments as the July 4 deadline approaches.

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