Financial reports from the European Union or relevant trade authorities

EU to Impose Tariffs on Chinese EVs Up to 38.1%, Generating €2 Billion Annually

Jun 12, 2024, 11:10 AM

The European Union is set to impose tariffs on Chinese electric vehicles (EVs) ranging from 17.4% to 38.1%, starting July 4. This move follows an investigation into alleged illegal subsidies provided by the Chinese government to its EV manufacturers. Specific tariffs include 17.4% for BYD, 20% for Geely, and 38.1% for SAIC. Companies that cooperated with the investigation but were not individually sampled will face a 21% tariff, while non-cooperating firms will be hit with a 38.1% duty. The decision, expected to generate €2 billion annually, has sparked strong opposition from China, with the Chinese Foreign Ministry and the China Association of Automobile Manufacturers expressing deep dissatisfaction and warning of potential retaliatory measures. Germany has also opposed the tariffs, citing concerns over a potential trade war. Tesla, which manufactures cars in China, may receive an individually calculated duty rate at the final stage of the investigation. China has criticized the EU's decision, stating it violates WTO rules.