On July 4th local time, the European Commission issued an announcement stating that after conducting a nine-month anti-subsidy investigation into Chinese electric vehicles (BEV), the European Commission has decided to impose temporary countervailing duties on imports of electric vehicles from China.

Official announcement of the European Commission:

Chinese translation:

Today, nine months after initiating the anti-subsidy investigation ex officio, the European Commission has imposed temporary countervailing duties on battery electric vehicles (BEV) imported from China. Based on the investigation, the European Commission has concluded that China's electric vehicle value chain benefits from unfair subsidies, posing a threat of economic damage to EU electric vehicle manufacturers. The investigation also examined the possible consequences and impacts of these measures on EU BEV importers, users, and consumers.

Following the exchange of views between Executive Vice-President Valdis Dombrovskis and Chinese Trade Minister Wang Wentao, consultations with the Chinese government have been intensified in recent weeks. Both sides continue to engage at the technical level in order to reach a WTO-compatible solution that fully addresses the concerns raised by the EU. Any negotiated outcome of the investigation must effectively address the identified forms of injurious subsidies.

The tariffs imposed on the three sampled Chinese manufacturers are:

BYD: 17.4%

Geely: 19.9%;

SAIC Motor: 37.6%.

The weighted average tariff rate for other cooperating Chinese BEV manufacturers that were not sampled is 20.8%. The tariff rate for other non-cooperating enterprises is 37.6%.

Compared to the tariff rates preliminarily announced on June 12, 2024, the temporary tariff rates have been slightly reduced based on comments from interested parties regarding the accuracy of the calculations. All detailed findings are reflected in the Implementing Regulation, which is now published in the Official Journal.

These temporary tariffs will apply from July 5, 2024, for a maximum period of four months. During this period, EU member states must vote to make a final decision on the definitive tariffs. Once the decision is adopted, these tariffs will be valid for five years.