BRUSSELS: China-Built EVs Face Duties in EU’s Largest Trade Case Yet: The European Union is set to impose tariffs ranging up to 37.6 per cent starting Friday (Jul 5) on electric vehicles imported from China. This move marks Brussels’ most significant trade action against Beijing to date, escalating tensions between the two economic giants.
There is however a four-month window during which the tariffs are provisional and intensive talks are expected to continue between the two sides as Beijing threatens wide-ranging retaliation.
The rates, detailed in a 208-page document released on Thursday, closely mirror those announced by the Commission on June 12. Following identification of minor calculation errors by companies, the executive has since adjusted the figures accordingly.
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.
At the end of it, the Commission, the EU’s executive arm, could propose definitive duties, typically applying for five years, on which EU members would vote.
“Those talks with China are ongoing and indeed should a mutually beneficial solution emerge, we can also find ways not to apply at the end of the day the tariffs,” Dombrovskis said.
“But it is very clear this solution (would) need to solve that market distortion that we are currently having and it needs to be market compliant.”
China’s commerce ministry said on Thursday both sides have so far held several rounds of technical talks over tariffs on the issue.
“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.
