China hopes to walk EU back from tariffs on imported EVs

Credit: Berlinergy | X

China is hoping to get the European Union to walk back from tariffs that would be applied to electric vehicles imported into the region by July 4.

Over the weekend, both sides said they would be willing to discuss the potential of throwing away the tariffs, which would be applied to EVs and add 17.4 percent to 38.1 percent for four months. The tariffs are expected to begin on July 4.

China’s Commerce Ministry and Germany’s Economy Minister both said this past weekend that things could be resolved by the early July date, and that they are willing to come up with a solution that would not require the tariffs to be applied.

Europe’s electric vehicle tariffs seemingly trigger response from China

According to a report from the Associated Press, the trade dispute could potentially come to an end.

The tariffs would apply to any vehicle imported into Europe from China, and it does not apply to Chinese brands specifically. Any vehicle built in China, including ones from Tesla, will be hit with the tariff. The tariff rates are in addition to the 10 percent duties that already apply to all imported EVs.

However, tensions seem to be cooling off, and the two sides could be open to resolving the matter before it even starts. The Chinese Commerce Ministry website said on Saturday:

“The two sides agreed to launch consultations on the EU’s anti-subsidy investigation into Chinese electric vehicles.”

Additionally, German Chancellor Olaf Scholz pushed the belief that things could be salvaged as well:

“There’s still a bit of time until July 4. But it’s clear, of course, that we will also need serious movement and progress from the Chinese side. It’s important that the EU takes its opportunity until the end of the month, but also that the Chinese government takes its opportunity to bring about an agreement.”

The tariffs are an attempt to keep Chinese EVs out of the market and encourage domestic manufacturing for companies and purchasing from consumers. Similar efforts have been made in the United States.

If the tariffs go through, Tesla stands to take a major hit.

The company exports vehicles from China at its Giga Shanghai factory to Europe, as it does not build the Model 3 in Germany at Giga Berlin. The tariffs would likely discourage consumers from buying the vehicles over the four-month period.

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China hopes to walk EU back from tariffs on imported EVs
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