China-EU trade reaches turning point with EV tariffs set to begin, but ‘scope to compromise’
- Analysts say provisional import tariffs on Chinese electric vehicles by the European Union represent an ‘inflection point’ in the relationship
Provisional import tariffs on Chinese electric vehicles by the European Union represent a juncture for the bilateral relationship, but both sides would have enough time to avert “a serious trade war”, analysts said, with the new levies set to take effect on Friday.
The European Commission confirmed on Thursday that the bloc’s additional duties of up to a revised 37.6 per cent on Chinese battery electric vehicles (BEVs) would begin on Friday and would initially last for a maximum of four months.
“Based on the investigation, the commission has concluded that the BEV value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers,” said a commission statement.
“The investigation has also examined the likely consequences and impact of these measures on importers, users and consumers of BEVs in the EU.
“Within that time frame, a final decision must be taken on definitive duties, through a vote by EU member states. When adopted, this decision would make the duties definitive for a period of five years.”
Provisional tariffs of 17.4 per cent, 19.9 per cent and 37.6 per cent would be applied to Chinese carmakers BYD, Geely and SAIC, respectively, said the statement.
