As the European Union begins imposing high tariffs on Chinese electric vehicles, trade relations between China and Europe are at a critical juncture. On October 4 2024, EU member states voted to approve the final draft of an anti-subsidy ruling targeting electric vehicles, mainly those imported from China. This vote highlighted the divisions within the EU on the issue, with 10 countries voting in favour, 5 voting against, and 12 abstaining.
The final tariff rates include 7.8% for Tesla, 17% for BYD, 18.8% for Geely, and 35.3% for SAIC, while other surveyed Chinese electric vehicle manufacturers that were not sampled individually face a general tariff rate of 20.7%.
The European Commission launched an anti-subsidy investigation into Chinese electric vehicles at the end of 2023 and introduced temporary tariffs in July 2024. The implementation of these final tariffs underscores the ongoing high-level engagement and negotiations between China and Europe since May. Notably, the final tariff rates are slightly reduced by 1-2 percentage points compared to the draft published in August.
Source: THE DIPLOMAT