The European Commission is set to vote on potential tariffs imposed on imported electric vehicles (EVs) from China this week, though one official says that the two countries could continue negotiating even after the rules take effect.
On Monday, Commission-Director General for trade deference Martin Lucas told the European Parliament that price changes and other potential negotiations to the tariffs may still continue following the effective date, as detailed in a report from Reuters. The Commission is set to vote on the EV tariffs this Friday, and if passed, they would take effect on November 1.
“The conclusion of the investigation is not necessarily the end of consultations with China on finding a solution,” Lucas said in the statement. “The investigation has its own legal deadlines and we cannot miss them. Definite measures need to be in place by Oct. 31.”
The official also noted that technical discussions with China on import tariffs had been held almost daily due to their increasing intensity, which could potentially cause the discussions to run beyond October. While Chinese automakers have recently been putting forward their own revised offers, Lucas says they aren’t yet suitable, despite there being some mutual progress.
Lucas also says that the Commission may re-evaluate factors like a minimum import price and volume cap model that were previously rejected when suggested by Chinese automakers.
The statements follow an anti-subsidy investigation launched earlier this year by the Commission, and the government body has now sent in a proposal for final tariffs, as calculated in September, according to three sources familiar with the matter who reported the details to Reuters. The proposal has been sent to the 27 EU members, ahead of the vote on Friday.
Companies including SAIC have been considered uncooperative with the investigation, and will be hit with import tariffs of 35.3 percent under the rules. Meanwhile, EVs imported from Tesla’s Gigafactory in China will be eligible for proposed tariffs of just 7.8 percent. Both of the tariff levels would be in addition to the 10 percent import duty that’s standard in the European Union (EU).
China & EU agree to settle differences over EV import tariffs
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