The European Union (EU tariffs on battery electric vehicles (BEVs) produced in China will come into effect on Friday, July 5, 2024.
The EU released details of upcoming tariffs on Chinese-made BEVS last month. Initially, the tariffs were as high as 38.1%. In late June, The EU revises part of proposed tariffs for specific Chinese car manufacturers.
The tariffs are not the same for every company shipping BEVs from China. The EU has set specific tariffs for the big three Chinese companies. The new tariffs are imposed on top of the EU’s 10%.
- BYD: 17.4%
- Geely: 19.9%
- SAIC interest rate: 37.6%
- BEV manufacturers in China that cooperated with the European Commission (EC) investigation [i.e., Tesla and BMW]: 20.8%
- BEV manufacturers in China that did not cooperate with the EC investigation: 37.6%
In 2023, the European Commission launched anti-subsidy investigation into Chinese imports of electric vehicles. The investigation found that Chinese states pumping subsidies throughout the local supply chain for BEV production, affecting domestic and foreign companies. The subsidies affected the final price of fully assembled BEVs shipped to Europe.
According to local media in Europe, the new tariffs will be provisional and will be imposed until EU member states finalize their implementation through a vote. The first vote on the new tariffs will be in two weeks. EU member states are expected to finalize their decision in four months.
Customs authorities will require bank guarantees from Chinese BEV exporters while member states vote on the new tariffs. As a result, BEV customers may not be directly affected by the tariffs.
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