Automotive industry EU will not impose additional tariffs on China's e-cars for the time being

The EU will not impose provisional additional duties on Chinese e-cars. The original plan was for high countervailing duties of up to 37.6 percent to be paid retroactively in certain cases.

This is because, according to the EU, e-cars from China would benefit from subsidies that distort competition. This threatens to damage the car industry. According to the EU Commission, Chinese electric cars are normally around 20 percent cheaper than models manufactured in the EU. However, as the Commission has now announced, the legal requirements for the retroactive levying of duties are not met.

Maximum rate of additional duty slightly reduced

The authority also announced that the duty rates have been adjusted slightly. They were lowered slightly in most cases. Specifically, a provisional penalty duty of 17.4 percent was to apply to the manufacturer BYD, 19.9 percent to Geely and 37.6 percent to SAIC. These rates have now been reduced to 17.0 percent, 19.3 percent and 36.3 percent respectively.

Tesla will therefore receive an individual tariff rate of nine percent. Companies that cooperate with the EU will be charged 21.3 percent (originally 20.8 percent), while the maximum rate of 36.3 percent will apply to uncooperative companies.

Geely produces the electric Smart models #1 and #3 and the Volvo EX30, among others. SAIC builds the MG4, which is popular in Germany and came in second place behind the VW ID.3 in the e-car registration statistics from Flensburg in May.

Final decision still open

The decision as to whether punitive tariffs will actually have to be paid at some point is to be announced by the end of October. However, the Commission must put this decision to a vote among the 27 EU member states. If a majority vote against it, it will not be able to introduce the countervailing duties. It is also hoped that a diplomatic solution can still be found with Beijing.

Car manufacturers and other affected parties now have the opportunity to request hearings with the Commission and submit comments within ten days. The Commission will examine these and then submit its proposal to the Member States for a final decision.