Report: EU Lowers Tariffs For Selected Chinese EV Makers, Albeit Marginally
The EU reportedly lowered its tariffs rate on selected Chinese EV-maker, albeit marginally. Included amongst them is SAIC-owned MG Motors brand.
Chinese electric vehicle (EV) makers who have cooperated with the European Union (EU) in the investigation regarding the tariff matter will reportedly be given a lower rate of tariff. This decision has been taken by the EU after considering the information gathered from the affected Chinese automakers.
This started with the SAIC-owned MG Motors brand, which saw its tariff rates being decreased to 37.6% from 38.15%. Similarly, rivals Geely also reportedly saw its tariff rates lowered from 20% to 19.9%. As for BYD, China’s largest NEV producer, its tariff remains at 17.4%. Tesla, instead, will receive an individualised duty rate upon request.
Companies that did not comply will be levied an additional 37.6%, while other Chinese EV producers who were cooperative with the investigation but were not sampled will pay a weighted average fee of 20.8%. Provisional tariffs will start on July 4, with definitive duties expected by Nov.
Geely were also amongst a select few given revised tariffs by the EU, albeit at a marginal rate too.
Tariffs on BYD products, on the other hand, remains unchanged. Notably, Tesla, which produces EVs in China, will receive individualised duty rate upon request.
The European Commission recently informed companies about upcoming tariffs. The declaration came after an examination of the subsidies provided to the firms by China and its state-owned banks.
In response, China has threatened retaliation, launching an anti-dumping probe on pork imports and planning to target EU spirits, agricultural goods, aviation, and large-engine cars. Amid this tension, several automakers and EU member states, including Germany, are urging for further negotiations between the EU and China.
Both parties are consulting on a resolution that adheres to World Trade Organization rules. Meanwhile, Beijing is attempting to divide EU member states by exerting bilateral pressure. The EU stated that provisional duties will be secured by a guarantee and will only be collected if definitive duties are imposed. KR
Source: Automotive News Europe
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Thoriq Azmi
Former DJ turned driver, rider and story-teller. I drive, I ride, and I string words together about it all. [#FuelledByThoriq] IG: https://www.instagram.com/fuelledbythoriq/
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