EU imposes higher tariffs on Chinese EVs

The European Union announced higher tariffs on Chinese electric vehicle imports due to significant unfair subsidies, posing a threat to European EV manufacturers.

The EU Commission found that China's battery electric vehicle supply chain is unfairly subsidised, warranting provisional countervailing duties on Chinese BEV imports.

These tariffs, from an October investigation, will take effect on 4 July if no resolution is reached with China, with permanent measures within four months.

Subsidised Chinese imports at low prices threaten EU industry. Non-cooperative Chinese BEV producers face a 38.1% tariff, while cooperative ones face 21%. BYD faces 17.4%, Geely 20%, and SAIC 38.1%.

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Tesla might get a specific duty rate after a formal request. Nio criticised the tariffs as harmful to global trade and environmental goals.

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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