New EU Duties on Chinese Electric Vehicles

Although the European Union has imposed definitive countervailing duties on Chinese battery electric vehicles (BEVs), the European Commission remains open to finding an amicable resolution with China. The Commission has expressed its willingness to negotiate price undertakings with individual exporters and is actively engaging with Chinese authorities to explore World Trade Organization (WTO)-compatible solutions. This stance underscores the EU’s commitment to fair trade practices and reflects a proactive approach to safeguarding the interests of its domestic industries. By balancing enforcement measures with diplomatic efforts, the EU aims to address the issue of unfair subsidies while maintaining constructive relations amidst evolving global trade dynamics.

By eEuropa Blog

Brussels,  13 November 2024 – 2 MINUTES READ

On 29 October 2024, the European Commission has officially imposed definitive countervailing duties on imports of battery electric vehicles (BEVs) from China, marking a significant step in addressing what it deems unfair trade practices.

Announced by the European Commission, the decision concludes an anti-subsidy investigation that found Chinese BEV producers receive substantial government subsidies. These subsidies enable Chinese manufacturers to export vehicles at low prices, posing a threat of economic injury to EU-based producers in the rapidly growing electric vehicle market.

Effective immediately and lasting for five years, the duties range from 7.8% to 35.3% and target major Chinese automotive companies such as BYD, Geely, and SAIC.

Tesla, after an individual examination, has been assigned a duty of 7.8%. The move aims to level the playing field for European manufacturers who have struggled to compete with the influx of low-priced Chinese electric vehicles.

While the tariffs represent a firm stance by the EU to protect its industries, efforts are concurrently underway to find World Trade Organization (WTO)-compatible solutions.

However, the European Commission has expressed openness to negotiating price undertakings with individual exporters and continues to engage with China to resolve the issue amicably. This development highlights the EU’s commitment to fair trade practices and its proactive approach to safeguarding the interests of its domestic industries amidst evolving global trade dynamics.