EU tariffs on China-made EV imports start July 5

Credit: @Mashele333/X

The European Union’s (EU) tariffs on China-made battery electric vehicles (BEVs) will be implemented starting Friday, July 5, 2024. 

The EU released details about the upcoming tariffs on China-made BEVS last month. Initially, the tariffs reached up to 38.1%. In late June, The EU revised part of the proposed tariffs for specific Chinese automakers. 

The tariffs are not the same for each company shipping BEVs from China. The EU set specific tariffs for the big three Chinese companies. The new tariffs will be imposed on top of the EU’s 10%. 

  • BYD: 17.4%
  • Geely: 19.9%
  • SAIC: 37.6%
  • BEV manufacturers in China who cooperated with the European Commission’s (EC) investigation [i.e., Tesla and BMW]: 20.8%
  • BEV producers in China who did not cooperate with the EC’s investigation: 37.6%

In 2023, the European Commission initiated an anti-subsidy probe on Chinese electric vehicle imports. The investigation discovered that Chinese states were pumping subsidies across the entire local supply chain for BEV productions, affecting domestic and foreign companies. The subsidies affected the final price of fully-assembled BEVs shipped to Europe. 

According to local media outlets in Europe, the new tariffs will be provisional, and the rates will be imposed until EU member states finalize their implementation through a vote. The first vote on the new tariffs will be in two weeks. The EU member states are expected to finalize their decision in four months.

Customs authorities will request bank guarantees from Chinese BEV exporters while Member states vote on the new tariffs. As a result, BEV customers may not be immediately affected by the tariffs.

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EU tariffs on China-made EV imports start July 5
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