WionDrive News Desk 
Amidst the escalating trade tensions between the European Union (EU) and China, the European Commission has notified automakers of its decision to impose substantial tariffs on imported Chinese electric vehicles (EVs). Citing unfair subsidies provided by the Chinese government, the Commission will apply additional duties of up to 38.1% on these vehicles, effective from next month.
The tariff rates vary across different Chinese automakers, with BYD facing a 17.4% duty, Geely facing 20%, and SAIC facing the highest rate of 38.1%. These tariffs will be imposed on top of the existing 10% tariff on imported vehicles, potentially making Chinese EVs less competitive in the European market.
The decision comes less than a month after the United States quadrupled its duties on Chinese EVs to 100%, further escalating trade tensions between the world’s two largest economies. The European Commission’s move is likely to draw a strong response from China, with the country’s commerce ministry already stating that it will closely monitor the situation and take all necessary measures to safeguard the legitimate rights of Chinese companies.
The provisional duties are set to apply by July 4, and the anti-subsidy investigation will continue until November 2, when definitive duties, typically lasting for five years, could be imposed. The Commission has stated that it will apply a rate of 21% for companies deemed to have cooperated with the investigation and 38.1% for those that did not.
Notably, Western producers such as Tesla and BMW, which export cars from China to Europe, were considered cooperating companies and will likely face lower tariff rates.
Margaritis Schinas, a Commission vice president, defended the decision, stating that Chinese-built cars were benefiting from unfair levels of subsidies, threatening EU producers. He added that the Commission has reached out to Chinese authorities to discuss these findings and explore possible ways to resolve the issues identified.
The indicative tariffs announced by the EU are higher than analysts’ expectations, which ranged between 10% and 25% on Chinese EVs. Major Chinese automakers like BYD, Geely, and SAIC did not immediately respond to requests for comment.
The move comes as European automakers are facing increasing competition from an influx of lower-cost EVs from Chinese rivals. China has rebuked the EU over the anti-subsidy investigation and urged cooperation, while also lobbying individual EU countries, but has not yet fully spelled out its response to the tariffs.
