Following earlier reports, the EU’s European Commission (EC) has confirmed new ‘provisional’ tariffs applying to Chinese electric vehicles shipped to the EU from next month.

The EC said it has provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers.

The EC also said it has ‘reached out to Chinese authorities to discuss these findings and explore possible ways to resolve the issues identified in a WTO-compatible manner’.

Provisional countervailing duties would be introduced from 4 July if discussions with the Chinese authorities do not lead to an effective solution by then.

The individual duties the EC would apply from 4 July to the three sampled Chinese producers and others would be:  

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  • BYD: 17.4%;
  • Geely: 20%;  
  • SAIC (ships MG branded cars): 38.1%.
  • Other BEV producers in China, which cooperated in the investigation but have not been sampled, would be subject to a ‘weighted average’ duty of 21%.
  • All other BEV producers in China which did not cooperate in the investigation would be subject to a residual duty of 38.1%

The EC said the sampled companies have individually received information about their own calculations and ‘have the possibility to comment on the accuracy’.

In terms of process, the EC said ‘definitive measures are to be imposed within four months after imposition of the provisional duties’ (by November 4 2024).

Editor’s note: Our understanding is that the proposed provisional duties above would be added on top of the ordinary import duty of 10% levied on imports of battery electric vehicles to the EU bloc.