It has “provisionally concluded” that, “should discussions with Chinese authorities not lead to an effective solution,” tariffs on Chinese electric vehicle (EV) makers will take effect on July 4.
The decision from the EU coincides with its ongoing inquiry into what it describes as an influx of low-cost, government-subsidized Chinese automobiles into the trade bloc.
China called the probe “protectionism” and claimed the levies broke international trade regulations.
EV manufacturers will be subject to an average duty of 21% if they cooperated with the investigation, which began in September; otherwise, they would be subject to a duty of 38.1%.
In the interim, three businesses will be subject to certain fees:
BYD: 17.4%
Geely: 20 percent
SAIC: 38.1%
These costs would be in addition to the 10% tax that is currently applied to all Chinese-made electric vehicles.
The US took a considerably more daring step last month, boosting its tariff on Chinese electric cars from 25% to 100%, which prompted the EU to step in.
The EU’s politicians as well as a number of business leaders have criticized the decision, in addition to China.
In Jian, a spokesman for China’s foreign ministry, the “anti-subsidy investigation is a typical case of protectionism”.
