The European Union (EU) may impose tariffs as high as 38.1% on the import of Chinese electric vehicles. The announcement comes after the EU found that the EV producers in China benefit “heavily from unfair subsidies” and pose a “threat of economic injury” to Europe’s EV producers.
The executive arm of the EU, the European Commission, concluded that the EV value chain in China “benefits from unfair subsidisation” and said that it is in the EU’s interest to impose “provisional countervailing duties” on EV imports from China.
While the duties are provisional, they will be introduced from the 4th of July if the talks with Chinese authorities to reach a solution turn out to be unfruitful. A statement by the commission said that definitive measures will be placed within four months of the imposition of provisional duties.
“The influx of subsidised Chinese imports at artificially low prices therefore presents a threat of clearly foreseeable and imminent injury to EU industry,” the commission stated.
In an interview to CNBC, Valdis Dombrovskis, the EU commissioner for trade, said that the investigation was based on “facts and evidence” and the engagement with Chinese authorities and stakeholders about potential solutions is ongoing.
A 38.1% tariff will be imposed on battery-electric vehicle producers who did not cooperate with EC’s investigation, and a lower 21% duty on carmakers in the Asian country who complied but have not been “sampled.”
