EU May Impose 35.3% Additional Tariffs on China-Built EVs

Both the European Union and China are looking for minimum price commitments from Chinese manufacturers or investments in Europe as an alternative to tariffs.

The European Union and China have agreed to hold talks on technical negotiations on alternatives to tariffs on China-built electric vehicles, the European Commission said on October 25.

Next week, the EU plans to impose additional tariffs of 35.3% on electric vehicles made in China, following the end of the anti-subsidy investigation. Further discussion can also take place.

"The principals agreed that further technical negotiations would take place shortly", the Commission said after a video call between EU trade chief Valdis Dombrovskis and Chinese Minister of Commerce Wang Wentao.

Both the European Union and China are looking for minimum price commitments from Chinese manufacturers or investments in Europe as an alternative to tariffs.

The EU Emphasised Under WTO Rules Companies Allowed to Offer Price Undertakings

The European Union emphasised that under WTO rules, different companies involved are allowed to offer price undertakings.

The EU Formally Introduced Anti_subsidy Investigation into China-made EVs

The European Commission formally introduced an anti-subsidy investigation into imports of China-made EVs on October 4, 2023. They claimed that these imports are unfairly affecting the European market.

The European Commission conducted eight rounds of technical negotiations with Chinese counterparts and said there were "significant remaining gaps".

Dombrovskis and Wang are committed to finding a solution that will be mutually agreed. This will ensure fairness in the EU market and adherence to World Trade Organization regulations, the Commission stated.

Two weeks ago, China urged the European Union not to conduct any separate negotiations with companies as it would "shake the foundations" of negotiations.

The Commission said Dombrovskis had emphasised that the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) do not exclude discussions with individual exporters.

Different EV makers face different tariffs. 7.8 percent tariff is imposed on Tesla (NASDAQ: TSLA), and 35.3 percent for SAIC and other companies deemed not to have cooperated with the EU's investigation.