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EU Imposes Up to 48% Tariffs on Chinese EVs from July 5 Amid Trade Dispute

Jul 4, 2024, 07:17 AM

The European Union has moved forward with plans to impose provisional tariffs on electric vehicles (EVs) imported from China. These duties, which will take effect on July 5, range from 17.4% for BYD, 19.9% for Geely, to 37.6% for SAIC, and could go as high as 48%. The tariffs are part of the EU's largest trade case yet, highlighting a significant trade dispute with China. EU countries are divided on the issue, with Germany opposing the tariffs due to its substantial car sales in China, while France supports the measures. Polestar, a Chinese EV maker, has reported a first-quarter operating loss and plans to offset the tariffs. The German car industry has urged the EU to drop the planned tariffs, citing negative effects on demand for battery electric vehicles (BEVs) in Europe. Meanwhile, China's Commerce Ministry has expressed hope for a mutually acceptable solution and has engaged in several rounds of technical talks with the EU. EU Trade Chief Dombrovskis stated there is no basis for Chinese retaliation. Volkswagen has criticized the decision, and NIO is considering adjusting prices in Europe. The provisional tariffs will be in place for a maximum of four months, during which further negotiations are expected.