EU confirms duties on Chinese cars from 5 July

Compared to the pre-disclosed rates, the provisional duties have been revised. Definitive ones could materialise in November

L'Ue conferma: i dazi sulle auto cinesi dal 5 luglio

Photo by: Shutterstock

By: Eleonora Lilli

Published by: Angel Sergeev

Jul 5, 2024 at 4:43am ET

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As of 5 July 2024, duties will come into force on electric cars produced in China. The EU confirms this in an official note, so no backtracking (as Germany hoped). The final duties will come into force by November, unless Europe and China find an alternative solution in the meantime or a qualified majority of EU member states blocks the decision.

"We are continuing to engage intensively with China for a mutually acceptable solution," Valdis Dombrovskis, executive vice-president of the European Commission, said in a statement. "Any negotiated outcome of our investigation must clearly and comprehensively address the EU's concerns and comply with WTO rules."

Meanwhile, China, which has already launched a targeted anti-dumping investigation into EU imports of pork and spirits, is thinking about how to bring this decision down on the shoulders of European carmakers.

Tariffs on Chinese cars: all you need to know

Chinese car tariffs, questions and answers

China strikes back in the face of new European customs duties

How duties apply from July 5, 2024

Compared to the rates pre-disclosed on 12 June, the provisional duties were slightly revised based on comments on the accuracy of the calculations submitted by interested parties.

In practice, MG SAIC Motor will face a 37.6 per cent tariff on top of the current 10 per cent rate, while Geely and BYD will be hit with additional tariffs of 19.9 per cent and 17.4 per cent, respectively.

Other EV manufacturers in China that cooperated in the investigation but were not sampled will be subject to a weighted average duty of 20.8 per cent, while non-cooperating companies will be subject to an additional 37.6 per cent tax. Tesla may receive an individually calculated duty rate at that final stage, following a sampling request.

Automotive group New duty (to be added to 10%) Total duty MG SAIC Motor 37.6% 47.6% Geely Group 19.9% 29.9% BYD Group 17.4% 27.4% Other cooperating companies 20.8% 30.8% All other companies 37.6% 47.6%

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All the detailed results of the investigation can be found in the implementing regulation, now published in the Official Journal and in the .pdf document linked just below.

COMMISSION EXECUTIVE REGULATION (EU) 2024/1866 of 3 July 2024

The European Commission's comment

In its official note of 4 July, the European Commission writes that "consultations with the Chinese government have intensified in recent weeks, following an exchange of views between Executive Vice-President Valdis Dombrovskis and Chinese Trade Minister Wang Wentao. Contacts continue at the technical level with a view to reaching a WTO-compatible solution that adequately addresses the concerns raised by the EU. Any negotiated outcome of the investigation must be effective in addressing the identified harmful forms of subsidisation."

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