The EU has revised its proposed tariffs on Chinese EVs… but only in the slightest

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The EU has revised its proposed tariffs on Chinese EVs… but only in the slightest


A new report states that the European Union has slightly tweaked its proposed tariffs on imported EVs from certain Chinese automakers after those companies divulged more details of their businesses. The tariff cuts are marginal but could offer a shred of hope that the EU is still willing to negotiate said duties before they are imposed next week.

Another week, another chapter in the ongoing bluster of a potential trade war following proposed tariffs by the EU on Chinese-built EVs entering the region.

You probably know the backstory by now. The EU Commission opened an anti-subsidy probe into Chinese EV imports, deeming them unfair in competition, threatened new tariffs, the US imposed tariffs of its own quadrupled to 100%, etc.

Last we reported, Canada had joined the fracas, mulling tariffs on Chinese EVs to align with its US and EU trade partners. Meanwhile, China’s Ministry of Commerce had criticized the EU Commission’s anti-subsidy probing, claiming the requested details from foreign automakers were “unprecedented” and compared the probe to spy-like levels of inquisition.

Earlier this month, China’s Ministry of Commerce met in Beijing with several automakers subject to the EU probe, including state-owned SAIC and BYD. The meeting also included European automakers like BMW, Volkswagen, and Porsche, who have tried to help find a solution to avoid the Chinese government’s threats to “adopt firm countermeasures” and raise a provisional tariff on imported gasoline cars from the EU.

In a recent report, the EU has eased its proposed tariffs for some Chinese EV automakers, but only by mere percentage points.

China tariffs

EU reduces proposed tariffs for SAIC and Geely

According to a recent Bloomberg report, the EU has reduced some tariffs on Chinese EVs after receiving more information from automakers as part of its anti-subsidy probe. The news comes from someone familiar with the matter who spoke under the condition of maintaining anonymity.

Per the report, the following Chinese automakers will see reduced duties on EVs imported into the European market:

  • SAIC: 37.6% (Previously 38.1%)
  • Geely Automobile Holding: 19.9% (Previously 20%)

As you can see, the reduced tariff percentages are marginal but better than nothing, we suppose. The revised proposed tariffs will add to the existing 10% duty in the EU and apply to the other Chinese automakers—those who cooperated with the anti-subsidy and those who didn’t. Those proposed tariffs are an additional 20.8% (weight average duty) and 37.6% levy, respectively.

Rising EV automaker Build Your Dreams (BYD) was also mentioned in the EU tariff reduction report but will see no change to its proposed duties, which will be 17.4% if and when those tariffs take effect next.

Both China and the EU are reportedly still in talks at the negotiating table, and it appears the former is now settling for a bartered compromise rather than a complete abolishment of the new tariffs. We will keep a close watch on this ongoing story as the EU’s proposed tariffs are scheduled to initially go into effect on July 4 before definitive duties kick in this fall.

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