Recent weeks have seen intense consultations between EU Vice-President Valdis Dombrovskis and Chinese Minister of Commerce Wang Wentao, with ongoing technical discussions aimed at finding WTO-compliant solutions.
The European Commission has imposed specific tariffs on three Chinese manufacturing groups: BYD (17.4%), Geely (19.9%), and SAIC (37.6%). Other companies cooperating with EU authorities face an average weighted tariff of 20.8%, while "non-cooperating" entities are subject to a 37.6% tariff. Tesla will receive an individually calculated tariff at the final stage of the investigation.
EU implements temporary tariffs to equalize competition in electric vehicle market
These reduced temporary tariffs, effective from July 5, 2024, for up to four months, aim to achieve a level playing field between subsidized Chinese enterprises and European electric vehicle manufacturers.
Member states of the EU will decide on permanent tariffs, which could last for five years, as announced in the Official Journal. The tariffs collected will contribute to the EU budget.
Currently, manufacturers subject to these tariffs must provide bank guarantees at border crossings, with cash payments to the EU scheduled for early November upon the introduction of permanent tariffs. If the EU withdraws the tariffs on Chinese electric cars, these guarantees will be terminated.
Source: PAP
(mp)