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EU Imposes Up to 45% Tariffs on Chinese EVs for Five Years; China Launches WTO Complaint

Oct 29, 2024, 05:45 PM

The European Union has imposed additional tariffs of up to 45.3% on Chinese-made electric vehicles (EVs) after concluding that they are unfairly subsidized by Beijing. The new tariffs, which take effect from October 30 and will be in place for five years, are in addition to the existing 10% import duty. The European Commission set individual tariff rates for manufacturers, including 7.8% for Tesla, 17% for BYD, 18.8% for Geely, 35.3% for SAIC, and 20.7% for others. China has strongly opposed the decision, stating that it does not "agree with or accept" the EU's ruling and has initiated proceedings at the World Trade Organization's Dispute Settlement Body. The Chinese Ministry of Commerce warned that the EU's actions could undermine mutual trust and disrupt overall negotiations. The European Commission indicated it will continue to work towards finding alternative WTO-compatible solutions and will continue discussions on price undertakings. The decision has heightened trade tensions between the EU and China and raised concerns over possible retaliation from Beijing. Germany, which campaigned for a negotiated solution but was overruled, voted against the tariffs.