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China-EU relations
ChinaDiplomacy

Chinese carmakers brace for EU tariffs on electric vehicles from July 4

  • Industry group told to expect provisional duties but rate will be disclosed next week, according to sources
  • It is the result of an investigation into subsidies in China’s electric vehicle industry that has enraged Beijing

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The inquiry was launched in October, with European Commission chief Ursula von der Leyen warning of a “flood” of Chinese EV imports coming to Europe. Photo: Bloomberg
Finbarr Berminghamin Brussels
The European Commission is expected to levy provisional duties on made-in-China electric vehicles from July 4, EU officials told Chinese carmakers on Monday.
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An EU investigation into subsidies in China’s EV industry has threatened to tear new ruptures in an already tense bilateral relationship. The commission is expected to inform companies privately next week about the level of import duty that will be applied.

A Chinese automobile association met with the bloc’s department of trade in Brussels on Monday for a hearing on the probe, according to people familiar with the meeting. During this hearing, businesses were told to expect provisional duties on July 4, although no tariff rate was disclosed.

It is understood that Chinese businesses affected have sought legal advice on the commission’s apparent decision to apply tariffs without communicating the rate four weeks before they take effect, as is customary in the EU.

It was previously expected that the rate would be disclosed on Wednesday, June 5. After July 4, the commission has four months to turn the provisional duties permanent, in consultation with member states.

The investigation has put more strain on the EU-China relationship. Photo: AFP
The investigation has put more strain on the EU-China relationship. Photo: AFP

“This is an ongoing investigation, we are not going to comment on it. We will be in a position to announce some provisional elements on it quite soon,” said Olof Gill, the EU’s trade spokesman.

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