EU intends to reduce tariffs on imports of cooperating battery electric vehicles from China

(MENAFN) In a significant move within its ongoing anti-subsidy investigation, the European Union plans to revise tariffs on imports of cooperating battery electric vehicles (BEVs) from China. The European Commission announced on Tuesday that, according to a draft decision, Tesla, which manufactures BEVs in China, will face a reduced tariff rate of 9 percent. In contrast, other Chinese manufacturers will encounter higher tariffs, with BYD facing 17 percent, Geely 19.3 percent, and SAIC a substantial 36.3 percent. Additionally, a tariff rate of 21.3 percent will be applied to other cooperating companies, while non-cooperating firms will be subjected to a general tariff rate of 36.3 percent.

This tariff adjustment is part of a broader investigation into the impact of subsidized Chinese BEVs flooding the EU market. The probe was announced by European Commission President Ursula von der Leyen in September of the previous year. The commission's draft decision reflects growing concerns about the rapid rise of low-priced electric vehicles exported from China and their effect on the European automotive market.

The European Commission emphasized that its decision is being made in compliance with both EU regulations and World Trade Organization (WTO) rules. The process ensures that all interested parties, including the Chinese government, manufacturers, and exporters, have the opportunity to present their comments, evidence, and arguments. This procedural transparency aims to address concerns from all stakeholders while upholding international trade standards.

The proposed tariffs are intended to balance the competitive landscape and address perceived unfair trade practices, ensuring that EU market conditions are not adversely affected by artificially low-priced imports. The final decision will be made after considering all submissions and arguments from the concerned parties, and it will shape future trade dynamics between the EU and China in the electric vehicle sector.

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