EU Commission proposes permanent import tariffs on Chinese electric cars
The European Commission wants to impose additional tariffs on imports of electric vehicles from China for a period of five years. Provisional tariffs have been in place since early July, but the Commission wants to make them permanent.
The tariffs were introduced on 5 July because, according to the Commission, China's electric vehicle sector is unfairly subsidised, hurting European carmakers. The provisional tariffs will remain in place until November, but the Commission unveiled a draft proposal for permanent tariffs on Tuesday.
The Commission has slightly adjusted the proposed final tariffs compared to the provisional ones, reducing them from 17.4% to 17.0% for BYD, from 19.9% to 19.3% for Geely and from 37.3% to 36.3% for SAIC. Other manufacturers that cooperated with the Commission's investigation will be charged 21.3%, up from the provisional 20.8%. Tariffs for non-cooperating companies have been reduced from 37.6% to 36.3%.
Currently, tariffs of 10% are already in place, and these tariffs are on top of that.
Tesla gets lower tariffs
Tesla's tariffs see the biggest change. Elon Musk's car company, which exports Chinese-made electric cars to Europe, had asked the Commission for a lower individual tariff, taking into account the subsidies it receives. The Commission is now proposing a 9% tariff, down from a provisional 20.8%.
Stakeholders will now have 10 days to comment on the Commission's proposal, which will then be submitted to EU member states for approval. Only if there is a sufficient majority against the tariffs will it be rejected. If not, it will automatically be adopted for a period of five years, with the possibility of renewal.
"Ball is in China's court"
It is a divisive issue within the EU. In an advisory vote in July, only 12 of the 27 member states voted in favour of the measure, with most others abstaining. Germany, in particular, is opposed to the additional tariffs, as China is an important market for German carmakers.
If the EU and China reach a negotiated solution on subsidies to the sector, the tariffs could be adjusted. "But the ball is in China's court. It must propose a solution that is compatible with World Trade Organisation (WTO) rules," a Commission spokesman said on Tuesday afternoon.
PHOTO © STR / AFP
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