“EU Imposes Up to 38.1% Tariffs on Chinese EVs, Shares in European Car Manufacturers Drop”

Date:

BRUSSELS, June 12 (Reuters) – The European Commission announced on Wednesday that it would impose additional duties of up to 38.1% on imported Chinese electric vehicles (EVs) starting next month, a move likely to provoke possible retaliation from China.

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Less than a month after the United States quadrupled duties on Chinese EVs to 100%, Brussels declared it would set tariffs of 17.4% for BYD (002594.SZ), 20% for Geely (0175.HK), and 38.1% for SAIC (600104.SS) due to what it described as excessive subsidies.

Shares in European car manufacturers dropped on Wednesday following the announcement.

China’s commerce ministry responded by stating it would closely monitor the situation and take all necessary measures to protect the legitimate rights of Chinese companies. The EU’s provisional duties are scheduled to take effect by July 4, with the anti-subsidy investigation continuing until November 2, when definitive duties, typically lasting five years, could be imposed.

The Commission indicated it would apply a 21% tariff for companies deemed cooperative with the investigation and 38.1% for those considered uncooperative. These new tariffs are in addition to the existing EU tariff of 10%. Western manufacturers such as Tesla (TSLA.O) and BMW (BMWG.DE), which export cars from China to Europe, were classified as cooperating companies.

Margaritis Schinas, a Commission vice president, stated that Chinese-built cars were receiving unfair subsidies, posing a threat to EU producers. “On this basis, the Commission has reached out to Chinese authorities to discuss these findings and explore possible ways to resolve the issues identified,” he said at a news conference.

The indicative tariffs exceed analysts’ expectations of between 10% and 25% on Chinese EVs. BYD, Geely, SAIC, and Tesla did not immediately respond to Reuters’ requests for comment on the report.

The move comes as European automakers face increasing competition from lower-cost EVs produced by Chinese rivals. China has criticized the EU’s anti-subsidy investigation, urged cooperation, and lobbied individual EU countries, but has not fully outlined its response to the tariffs.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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