Brussels confirms penalization of Chinese cars: BYD, Geely and SAIC face tariffs of up to 37.6%
The European Commission confirmed this Thursday that it will move forward with the provisional increase in customs tariffs on electric cars from China.
Provisional rights were allocated to certain Chinese producers as follows: BYD: 17.4%, Geely: 19.9% and SAIC: 37.6%. The initial rates announced by the Commission on June 12th remained unchanged for BYD, decreased for Geely (20%) and SAIC (38.1%).
Other BEV producers that cooperated in the investigation are subject to a weighted average duty of 20.8%, while companies that did not cooperate in the investigation are subject to a duty of 37. 6%. A BEV producer in China, Tesla, may receive an individually calculated duty rate at the definitive stage, Brussels says in a statement.
These provisional rights will come into force from July 5, 2024, with a maximum duration of four months. During this period, EU Member States must vote on whether to impose definitive duties, which will then apply for five years.
The investigation concluded that the Chinese BEV sector benefits from significant subsidies, creating an uneven playing field and posing a substantial risk to the European automotive industry. The Commission’s analysis also considered the potential impact on EU BEV importers, users and consumers.
According to the press release, consultations with China have intensified, particularly between Executive Vice-President Valdis Dombrovskis and Chinese Minister of Commerce Wang Wentao. Discussions are ongoing at a technical level to find a World Trade Organization-compatible solution that effectively responds to the EU’s concerns.
Interested parties may request hearings to the Commission within five days of the entry into force of the measures and submit their observations within 15 days. The Commission will then publish the proposed definitive measures and grant an additional period of 10 days to submit observations. The final decision will be presented to Member States for a vote.
