
European Commission discloses draft duties on China-made battery electric vehicle imports
The European Commission (EC) unveiled on Tuesday its draft decision on definitive countervailing duties on battery electric vehicle (BEV) imports from China, Kallanish reports.
Carmakers received the proposed additional tariffs they will be subject to, and now have 10 days to provide comments. Interested parties can also request hearings with the EC “as soon as possible.”
The decision follows an anti-subsidy investigation officially started on 4 October 2023. Temporary duties, on top of the existing 10% import tariff, entered into force on 5 July 2024. If approved in an upcoming vote by member states, definitive countervailing duties will be imposed on 5 November for a five-year period.
Based on “substantiated comments” received from carmakers on the provisional measures, the EC has slightly adjusted the proposed rates downwards. They range from 17% to 36.3%, instead of the original maximum rate of 38.1%.
However, US EV maker Tesla has received a much lower rate than peers. This “individual duty rate” of 9% was granted as an exporter from China. This means Tesla’s BEV models shipped from its Shanghai gigafactory will only be subject to a total of 19% import duties “at this stage.”
In comparison, BYD vehicles are subject to 27%. Other cooperating companies, which the EC has not publicly disclosed, will face total tariffs of 31.3%. “Non-cooperating” companies such as SAIC, the parent company of MG Motors, are facing the harshest combined rate of 46.3%.
China Chamber of Commerce to the EU (CCCEU) expressed its “strong dissatisfaction and firm opposition to the EC’s protectionist approach.” The group argues the development of the European EV industry, along with the EC’s own report, “shows that there is no sufficient evidence to demonstrate that China’s BEVs cause substantial material injury in the EU market.”
“The EC’s unfair use of trade tools to hinder free trade in electric vehicles, along with this protectionist approach, will ultimately weaken the resilience of the European electric vehicle industry, disrupt the level playing field, and undermine the EU’s own green transition,” it adds.
The move will also exacerbate trade tensions between China and the EU, but the EC doesn’t see it impacting the ongoing procedures in the World Trade Organisation (WTO). Beijing says the EU has not followed WTO trade rules and has initiated a dispute consultation.

Brussels imposes provisional duties on Chinese BEV imports
Brussels on Thursday imposed provisional countervailing duties on China-made battery electric vehicles as planned, though negotiations with Beijing continue, Kallanish reports.
The European Commission confirmed the additional tariffs on BEVs have been slightly reduced based on comments on the accuracy of the calculations submitted by interested parties. The investigation resulted in individual duties based on carmakers’ circumstances and cooperation.
Chinese carmakers BYD will be subject to an additional tariff of 17.4%. Geely’s tariff now stands at 19.9% and state-owned manufacturer SAIC’s – the parent company of MG Motors – at 37.6%. The average duty for BEV producers in China that cooperated with the EC, but were not sampled, is 20.8%. Non-cooperating firms will be hit with an import tariff of 37.6%, on top of the existing 10% duty.
These provisional duties will apply from 5 July for a maximum duration of four months, when a final decision must be taken through a vote by EU member states. “When adopted, this decision would make the duties definitive for a period of five years,” the EC explains.
Following an “exchange of views” between EC’s vice-president Valdis Dombrovskis and Chinese trade minister Wang Wentao, bilateral consultations have “intensified,” the EC adds. Contacts are continuing on a “technical level” aimed at reaching a WTO-compatible solution, it notes.
“Any negotiated outcome to the investigation must be effective in addressing the injurious forms of subsidisation identified [in China],” the commission states.
A spokesperson for the Chinese commerce ministry suggested on Thursday that despite Beijing’s “strong opposition” to the investigation, there is hope for a positive outcome.
“There is still a 4-month window before the final ruling. We hope that the EU will work with China to meet each other halfway, show sincerity, speed up the consultation process, and reach a solution acceptable to both sides as soon as possible based on facts and rules,” says He Yadong. “China hopes that the EU will seriously listen to the voices within the alliance and conduct consultations with China rationally and pragmatically to avoid anti-subsidy measures that harm the mutually beneficial cooperation and common development of the China-EU automobile industry,” he adds.
It follows the German auto association VDA’s statement saying the tariffs will harm the interests of European manufacturers operating in China, but may also restrict European access to critical raw materials.