ECG Policy update: Review of the provisional tariffs on battery electric vehicles exported from China to the EU

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On 12 June 2024, the EU Commission released a set of provisional findings concluding that electric vehicle value chains in China have benefited from subsidies making the final products too cheap to compete directly with those battery electric passenger cars produced within the EU.

The findings have been disclosed directly to the Chinese government authorities and those OEMs that the EU Commission used as samples in the investigation. The findings, including the provisional tariffs per automaker and related company, are now awaiting any proposition from the Chinese government authorities to find methods to resolve the issue in a WTO compatible manner. The EU Commission has also sent the provisional findings and tariffs to those OEMs sampled and has given them 3 days to respond with any counter-balancing evidence to refute the planned tariffs.

If no adequate or sufficient counter-balancing evidence is received by the EU Commission, then the following tariffs will be imposed from 4 July 2024.

Collection of the tariffs will take place later following methods to be decided by Customs in each Member State.

Tariffs range from 17.4% to 38.1% depending on if the OEM is cooperating with the EU Commission. These tariffs are in addition to the existing 10% import tariff.

All battery electric vehicles produced in China, exported to the EU, will be subject to some form of tariff.

All brands, including European brands such as BMW, VW, Mini, Polestar, Volvo, Dacia will all be affected.