The EU amends tariffs on EVs manufactured in China

The European Commission lowers new additional taxes on cars made in China and announces a tariff for Tesla.

By: Riccardo Ciriaco

Aug 21, 2024 at 3:16am ET

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Duties on electric cars produced in China and imported into the EU are changing again. Confirming the accusation that Beijing is trying to conquer the Old Continent with vehicles sold at low prices through industrial dumping, the European Commission is reducing punitive and additional customs duties on cars manufactured in China.

The new taxes on electric cars of Chinese origin range from +9% to +36.3%: a quota to be added to the already existing duty of +10% (for a total minimum of 19% and a maximum of 46.3%) and which, at the same time, represents a small reduction on what was previously planned.

The manufacturers concerned are BYD (17%), Geely (19.3%), SAIC (36.3%), Tesla (9%) and what Brussels calls "other cooperating companies" (21.3%) and "all other non-cooperating companies" (36.3%), i.e. companies that have or have not responded to the EU executive's questions.

Duties on Chinese electric cars

Manufacturer	New duty	Previous duty	Total
BYD	17%	17.4%	27%
Geely	19.3%	20%	29.3%
SAIC	36.3%	37.6%	46.3%
Tesla	9%	/	19%
Other collaborating companies	21.3%	21%	31.3%
All other non-cooperating companies	36.3%	37.6%	46.3%

The main news concerns the duty of +9% on Tesla, which the Commission has so far condemned without giving any precise indication of the penalty, to be applied to the Model 3 manufactured in the Shanghai gigafactory and destined for Europe. Then, surprise, comes "the decision not to levy countervailing duties retroactively", as Brussels itself puts it.

The next steps

Now, says the EU executive, manufacturers will have "the opportunity to request hearings with the Commission services as soon as possible and to provide comments within 10 days".

"Then, after taking into account the comments of interested parties, the Commission will present the final decision to the Member States, who will vote, with binding effect."

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Brussels also specifies that "the definitive measures must be imposed no later than four months after the imposition of the provisional duties" and that they "will be in force for five years, extendable on reasoned request and after review". This means that the new taxes are not yet definitive and could still change. Finally, we would remind you that the provisional duties have been in force since 5 July.