TMTPost -- The European Union is tweaking the provisional tariff rates that it planned to impose on China-made electric vehicles (EVs) following comments from the industry, according to a report.


Credit：Xinhua News Agency

The EU slightly revised its proposed tariffs on EVs imported from China after receiving more information from the affected companies, Bloomberg reported on Wednesday, citing a person with knowledge of the matter. The reported tariff rates on three sampled Chinese EV producers, on top of the ordinary BEV import duty of 10%, are 17.4% for BYD, 19.9% for Geely and 37.6% for SAIC. That means the EU decided to levy a little bit less duties on Geely and SAIC-made EVs since its original proposed rates are 20% and 38.1%, respectively, while BYD, China’s largest EV manufacturer, faces the same tariff rate as EU’s original proposal.

According to the report, other EV makers in China, which cooperated in the EU’s investigation but have not been sampled, would be subject to a weighted average duty of 20.8%, instead of the original duty of 21%. All the rest battery electric vehicle (BEV) producers in China would face an extra duty of 37.6% if they did not cooperate in the investigation, per the report. That suggested the EU marginally cut the tariffs on those companies, down from the original 38.1%.

The report didn’t specify how the EU made such adjustment. the European Commission said on June 12 that it has pre-disclosed the level of provisional countervailing duties it would impose on imports of BEVs from China, which would be introduced from July 4 if discussions with Chinese authorities do not result in an effective solution. The executive arm of the EU concluded through an anti-subsidy investigation that the BEV value chain in China benefits from unfair subsidization, which is causing a threat of economic injury to EU BEV producers.

China will closely monitor the EU’s subsequent development and resolutely take all necessary measures to firmly defend legitimate rights and interests of Chinese firms, a spokesperson of the Chinese Commerce Ministry said right after the European Commission’s announcement. The tariffs levied by the EU not only damages the legitimate rights and interests of China’s EV industry, but will also disrupt and distort the global automotive industry chain supply chain, including the EU, according to the spokesperson.

China is promoting introduction of procedures related to tariff hike on gasoline cars with large displacement engine, more exactly, gasoline cars powered by engines larger than 2.5 liters, according to an article posted by Yuyuan Tantian, a social media influencer affiliated with state broadcaster China Central Television (CCTV), citing insiders of China’s auto industry following the EU’s additional tariff proposal. If China raises provisional tariff rate of the abovementioned vehicles, European brands such as BMW and Mercedes-Benz will be the first to be affected, which means that European automobile exports to China will suffer a blow, Yuyuan Tantian wrote.

China and the EU agreed to hold consultations on EVs after a meeting between Chinese Commerce Minister Wang Wentao and German Vice Chancellor Robert Habeck. China is willing to consider both parties' reasonable concerns to avoid the escalation of trade frictions in a rational and professional manner, Wang told Habeck, who travelled to China last weekend. Habeck said the German government is deeply concerned about the EU's anti-subsidy investigation into Chinese EVs, which will negatively impact Europe's green transition and consumer interests, according to a statement of Chinese Commerce Ministry.

The European Commission said on Monday it would host technical talks with Chinese officials in Brussels this week. "The EU side has emphasised that any negotiated outcome of the investigation must be effective in addressing the injurious subsidisation," Reuters cited a Commission spokesperson that day.German Chancellor Olaf Scholz said there needed to be "serious movement and progress" from China too.