EU gets warning from China after new Chinese EV tariffs

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China warned that the European Union's (EU) increased tariffs on Chinese electric vehicle (EV) imports would "harm Europe's interests."

Last year, the European Commission (EC) announced an anti-subsidy probe on Chinese electric vehicles. On June 12, 2024, the Commission announced countervailing duties that would be imposed on battery electric vehicles (BEVs) from China. The countervailing duties will be imposed on Chinese BEV imports starting July 4, 2024. 

China's Ministry of Commerce accused the European Union of "creating and escalating trade tensions" and predicted that the EU's new tariffs on Chinese EV imports would hurt European consumers. The Ministry added that it would take "all necessary measures to firmly defend the legitimate rights and interests of Chinese companies." 

According to the European Commission, its anti-subsidy investigation on Chinese EV imports is still in progress. However, the Commission has already decided on the duties it will impose on China's BEV imports. It will increase tariffs up to 38% next month, on top of the current 10% already in place on imported Chinese EVs. 

The European Commission set an individual duty for BYD, Geely, and SAIC because they were "sampled" Chinese producers. The Commission applied a tariff of 17.4% on BYD, 20% on Geely, and 38.1% on SAIC. Chinese BEV automakers who cooperated with the Commission's investigation but were not "sampled" will get the weighted average duty of 21% on their imported electric vehicles. Chinese automakers who did not cooperate with the Commission's probe will receive a residual duty of 38.1%.

A few European automakers have spoken against increased tariffs on Chinese EV imports. Volvo has reportedly moved BEV production to Europe to avoid the EU's new tariffs on China-made electric vehicles.

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