The EU has decided in the trade conflict with China over the import of electric cars. The Commission will impose additional tariffs of up to 37.6 percent provisionally from Friday.
Exports blocked: EU imposes additional tariffs on imports of Chinese electric cars Photo: China Daily/Reuters
BRUSSELS/FRANKFURT rt | Following much criticism from Germany, the European Commission will impose provisional punitive tariffs on the import of electric cars from China from Friday. “The countervailing duties will apply from 5 July for a period of up to four months,” the EU authority announced in Brussels on Thursday. On 12 June, the Commission announced tariff surcharges on top of the current 10 percent rate, justifying this with high subsidies from the Chinese government for the production of electric cars throughout the value chain. This creates an unfair advantage over the European car industry and jeopardizes their successful transition to electric cars.
Compared to the first announcement, the European Commission has slightly reduced the highest surcharge from the original 38.1 percent to 37.6 percent, thereby responding objection against their calculations. This rate applies to carmakers that did not cooperate with the EU investigation that began nine months ago, such as Volkswagen partner SAIC. The lowest additional rate for carmakers that cooperate with the EU was also reduced slightly to 20.8 percent.
Geely, a shareholder and partner of Mercedes-Benz, will have to pay 19.9 percent more import duties. This applies to the Smart model that Geely builds in China. All imports of electric cars from Tesla or European manufacturers, such as the electric Mini from BMW, are also affected by the tariffs. The German car industry warned that the EU would worsen trade relations with this move and ultimately weaken its own car industry.
The Beijing government had condemned the EU decision and Countermeasures threatened. At the same time, discussions have been initiated at working level and are still ongoing, with the aim of finding a solution within the framework of the World Trade Organization (WTO). “Any outcome of the investigation must effectively address the identified harmful forms of subsidization,” the European Commission said. In November, the EU wants to take a final decision on the tariffs, which companies do not have to pay until then but must guarantee.