EU Postpones Decision For Tariffs On Chinese EVs And EV Parts

Chinese EV makers can now breathe a sigh of relief, albeit momentarily, as the European Commission elected to delay its decision on imposing tariffs on imported EVs and EV parts from said republic.

The European Union, specifically European Commission, has decided to postpone its decision on imposing tariffs on imported Chinese electric vehicles (EVs), as well as EV parts imported from said republic.

The commission says the matter will be reviewed after the European Parliament election on June 9, reports Reuters. 

This delay is intended to avoid bringing the issue into the election campaign, according to German magazine Spiegel, which first reported the development. The next date for the decision is sparking controversy as a European Commission spokesperson noted that said date hasn’t been confirmed.

However, according to the same source that was mentioned, the deadline is set to June 10, which is the day following the election results, although the delay is attributed to a last-minute technical issue with the documentation.

Chinese EV makers faced the looming threat of tariffs on EVs and EV parts export to Europe. The decision for which has been delayed pending the results of the European Parliament election on June 9.

The provisional tariffs, initially expected to be announced by June 5, would have imposed billions of Euros in additional costs that Chinese EV makers would’ve had to absorb.

In response, Beijing has called for an end to the initial investigation efforts by the commission, labeling it "unreasonable" and contrary to international rules, according to a recent statement by the Chinese foreign ministry. 

Said investigation, which began Oct 4 last year, can last up to 13 months, with the commission able to impose provisional anti-subsidy duties nine months into the probe. Additionally, the Commission notified three Chinese EV makers that they have not provided sufficient information for the anti-subsidy investigation, as revealed by two individuals familiar with the case earlier this month.

Had a decision been made, Chinese automakers face stiff tariffs for exports of EVs and EV parts to the Old Continent, and would've costs billions of Euros in additional costs.

This tariff situation is quite a hot topic in the automotive industry as many carmaking giants in the Old Continent have all voiced their disapproval of which. Amongst them were leading German marques such as  BMW, Mercedes-Benz, and Audi.

According to said German powerhouses, the proposed tariffs could affect the automotive market negatively rather than positively as what is proposed by the European Commission. KR