EU Proposes Definitive Duties on Chinese Electric Vehicles

In a significant move to counteract subsidies, the European Commission has proposed definitive countervailing duties on battery electric vehicle (BEV) imports from China. The proposal, which was unveiled today, outlines duty rates ranging from 17% to over 36%, with specific rates assigned to various manufacturers. BYD is set at 17%, Geely at 19.3%, and SAIC at 36.3%, while other cooperating companies face a 21.3% rate. Companies not cooperating will also see duties at 36.3%. Notably, Tesla, as an exporter from China, faces a reduced individual duty of 9%, reflecting its full cooperation with the Commission's investigation.

The Commission's probe involved over 100 Chinese firms, with officials asserting confidence in the accuracy of the subsidies picture, particularly regarding Tesla. Interested parties have until August 30 to submit feedback on the proposal. Unless a qualified majority of EU member states opposes it, the proposal is expected to be adopted and will be enforced for five years, with the final decision published by October 30.

Earlier, in July, the Commission had set slightly higher provisional duties. However, it confirmed today that no retroactive duties will be applied to imports registered in the three months prior to the imposition of provisional duties. Despite this, Chinese exporters will still need to provide guarantees until the final duties are enforced.

Additionally, the Commission emphasized that China’s request for a consultation with the World Trade Organization (WTO) will not delay the EU's timeline. The Commission remains confident that its investigation and measures are fully compliant with WTO rules.