EU imposes new duties on electric car imports from China.

EU investigates unfair subsidies boosting Chinese electric car sales

On 4 October 2023, the European Commission launched an investigation into BEVs from China, prompted by concerns that Chinese subsidies were artificially deflating prices and distorting the European market. The investigation confirmed these findings, revealing that the BEV manufacturers in China indeed benefits from unfair subsidies. These practices are causing significant economic harm to European producers.

Countervailing duties introduced to protect European electric vehicle industry

To protect European BEV manufacturers, the EU has published an implementing regulation (Implementing Regulation (EU) 2024/2754). This regulation introduces a countervailing duty on certain electric cars imported from China.

The countervailing duty rates on Chinese electric car manufacturers

The level of import duties varies from company to company but can be as high as 35.3%. The manufacturers surveyed and their provisionally countervailing tariffs are:

• BYD: 17.0%

• Geely: 18.8%

• SAIC: 35.3%

• Tesla (Shanghai) Co., Ltd: 7.8%

Other Chinese BEV producers that cooperated in the study but were not included in the sample are subject to a weighted average tariff of 20.7%. This group can be found in the annex to the regulation. Non-cooperating companies are subject to a rate of 35.3%.

Implementation of permanent duties for Chinese BEVs

The temporary regulation entered into force on 5 July 2024. After a few months during which the member states voted, the import duties are now definitive. The tariffs are in force for a period of five years.

Potential effects of import duties on BEV prices and trade relations

The provisional increase in import duties means that automotive brands will have to pay more to import their cars into the EU. This could have an impact on selling prices. In this way, the European Union ensures that its own internal market is protected and that European companies do not experience unfair competition.

More information on the provisional countervailing duties on imports of battery-electric vehicles

Find out more information on EU trade defence instruments on the website of the European Commission. Consult EUR-Lex Implementing Regulation (EU) 2024/1866 for the full regulation.

Advice and support

Do you need help regarding the import duties on BEVs from China? Gaston Schul’s Consultancy & Advisory services are here to assist.