Brussels tightens controls, wants to impose a tax of up to 36.3% on Chinese electric cars and 9% on Tesla

On Tuesday, the European Commission proposed revised countervailing tariffs of up to 36.3% for Chinese electric vehicle makers in the European Union (EU), as well as countervailing duties of 9% for Tesla as an exporter from China.

About two months after deciding to impose preliminary countervailing duties on imports of battery-powered electric vehicles from China, given that Chinese manufacturers benefit from unfair subsidies for EU manufacturers, Brussels on Tuesday came up with a “small adjustment to the rates”. […] on the basis of reasoned comments regarding the interim measures received from interested parties, as well as the completion of investigative measures not yet completed at the preliminary stage.”

This means that the community leader wants, in order to level out competition in the EU, to apply tariffs of 36.3% to SAIC, 19.3% to Geely and 17% to BYD, as well as 21.3% to the other companies that participated in the survey and 36.3% of those that did not.

Those percentages compare with a proposal released last July of 37.6% for SAIC, 19.9% ​​for Geely and 17.4% for BYD, which also included 20.8% for manufacturers that participated in the survey but were not included in the sample, and 37.6% that did not cooperate.

The agency also announced today “a decision to grant Tesla a customized duty rate as an exporter from China, set at 9% at this stage,” with the North American electric vehicle giant having its largest facility in the world at its Shanghai plant.

“As part of the ongoing anti-subsidy investigation, the European Commission has disclosed to interested parties a draft decision to introduce definitive countervailing duties on imports of battery electric vehicles from China,” the agency said in a press release, explaining that this is an interim procedural step in the commercial safeguard investigation.

Interested parties now have 10 days to submit their comments, after which the Commission will analyse all these materials.

If Member States express their opinion, the final decision will be published in the Official Journal of the European Union, and tariffs could then be increased to 36.3%.

Brussels says there is a possibility that several Chinese exporters and some joint ventures with EU manufacturers that were not yet exporting at the time of the investigation could benefit from a lower tariff than others, with the same being true for related companies that cooperated in the investigation.

It was also decided not to levy countervailing duties retroactively.

The case in point is an investigation launched by the European Commission last October into Chinese state subsidies to electric vehicle manufacturers, which have rapidly entered the EU market (and today account for around 8%) and are sold at a much lower price (around 20%) than their Community competitors.