BRUSSELS, July 4 (Reuters) - The European Union will
impose tariffs of up to 37.6% from Friday on imports of electric
vehicles made in China, EU officials said on Thursday,
ratcheting up trade tension with Beijing.
There is however a four-month window during which the
tariffs are only provisional and intensive talks are expected to
continue between the two sides.
The European Commission's provisional duties of between
17.4% and 37.6% without backdating are designed to prevent what
its president Ursula von der Leyen has said is a threatened
flood of cheap EVs built state subsidies.
The rates are almost exactly the same as those announced by
the Commission on June 12. The executive made slight adjustments
after companies identified minor calculation errors in the
initial disclosure.
Beijing said then it would take "all necessary measures" to
safeguard China's interests.
These could include retaliatory tariffs on exports to China
of products such as cognac or pork.
The EU anti-subsidy investigation has nearly four more
months to run.
At the end of it, the Commission, the EU's executive arm,
could propose "definite duties", typically applying for five
years, on which EU members would vote.
China's commerce ministry said on Thursday both sides have
so far held several rounds of technical talks over tariffs on
the issue.
"There is still a four-month window before arbitration, and
we hope that the European and Chinese sides will move in the
same direction, show sincerity, and push forward with the
consultation process as soon as possible," He Yadong, a ministry
spokesperson, said.
BYD will face duties of 17.4%, Geely
19.9% and SAIC 37.6%, the EU said on Thursday. These are on top
of the EU's standard 10% duty on car imports.
Companies deemed by the EU to have cooperated with the
anti-subsidy investigation, including western carmakers Tesla
and BMW, will be subject to 20.8% tariffs and
those that did not cooperate a rate of 37.6%.
The Commission has estimated Chinese brands' share of the EU
market has risen to 8% from below 1% in 2019 and could reach 15%
in 2025. It says prices are typically 20% below those of EU-made
models.
European policymakers are keen to avoid a repeat of what
happened with solar panels a decade ago, when the EU took only
limited action to curb Chinese imports and many European
manufacturers collapsed. The EU launched its anti-subsidy
investigation into Chinese EVs last October.
The Chinese Passenger Car Association has said the tariffs
will have only a modest impact on the majority of Chinese firms.
The rates are far lower than the 100% tariff Washington
plans to apply to Chinese EV imports from August.