On July 4, 2024, the European Commission issued an announcement stating that after a nine-month anti-subsidy investigation into Chinese electric vehicles (BEVs), the European Commission decided to impose a temporary anti-subsidy tax on imports of electric vehicles from China.
European Union flag in Brussels, Belgium, June 27, 2024, local time.
The temporary tariffs apply to some Chinese manufacturers, namely BYD 17.4%, Geely 19.9%, SAIC 37.6%. Other Chinese manufacturers that cooperate but are not sampled will be subject to a weighted average tariff of 20.8%, and non-cooperative electric vehicle manufacturers will be subject to a tariff of 37.6%.
The provisional tariffs were slightly reduced compared to the rates previously disclosed on June 12, 2024, based on comments from interested parties regarding the accuracy of the calculations.
At that time, the European Commission stated that it would impose anti-subsidy duties of 17.4%, 20% and 38.1% respectively on the three sampled companies - BYD, Geely Auto and SAIC Group; an average anti-subsidy duty of 21% would be imposed on electric vehicle manufacturers that participated in the investigation but were not sampled; and electric vehicle manufacturers that did not cooperate with the investigation would be subject to an anti-subsidy duty of 38.1%.
It is understood that this temporary tariff will take effect on July 5, 2024 and will last for up to four months, during which time EU member states will vote on whether to convert it into a formal tariff lasting five years.
The EU and Chinese governments are still seeking a solution that complies with WTO rules through technical discussions.
On the 3rd local time, the German Association of the Automotive Industry issued a statement opposing the EU's temporary anti-subsidy tariffs on electric vehicles imported from China. The association believes that this move is not in the interests of the EU, will not only have a negative impact on European consumers and businesses, but will also hinder the development of the EU's domestic electric vehicle market and will not be conducive to achieving climate goals.