EU to Levy Tariffs on Chinese Electric Vehicles from Tomorrow, Impacting SAIC, Geely, BYD, etc.

TapTechNews July 4th news, according to Bloomberg report, EU officials said on the 4th local time that the EU will levy a maximum tariff of 37.6% on electric vehicles made in China and exported to the region starting from the 5th local time (Friday, tomorrow).

During the four-month window period (TapTechNews note: the final tariff will be levied in November, and the temporary tariff will be levied starting tomorrow), it is expected that China and the EU will continue to conduct intense negotiations. According to the EU's anti-subsidy investigation, SAIC Motor will be levied a 37.6% tariff on top of the existing 10% tariff, and Geely and BYD will be levied 19.9% and 17.4% tariffs respectively.

Other Chinese electric vehicle manufacturers that cooperate in the investigation but are not randomly inspected will be levied a weighted average tariff of 20.8%, while enterprises that do not cooperate in the investigation will face an additional 37.6% tax.

During the window period, EU member states will vote to decide whether to convert the temporary tariff into a five-year formal tariff. The EU and the Chinese government are still discussing at the technical level to seek a solution that complies with WTO rules. Compared with the pre-disclosed tariff on June 12, 2024, the temporary tariff has been slightly reduced according to the opinions put forward by relevant parties on the calculation accuracy.

Valdis Dombrovskis, Executive Vice President of the European Commission, disclosed in an interview with Bloomberg Television that (the EU side) negotiations with China are still ongoing. If there is a mutually beneficial solution, we can also find a way not to levy a definite tariff finally. But obviously, this solution needs to address the 'market distortion' problem we are currently facing.

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EU plans to levy a maximum of 38.1% tariff on Chinese electric vehicles: SAIC, Geely, and BYD are named, while BMW, Volkswagen, and Mercedes-Benz publicly oppose.