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 value chain in China indeed benefits from unfair subsidies. These practices are causing significant economic harm to EU manufacturers of BEVs.

Countervailing duties introduced to protect European electric vehicle industry

To protect European BEV manufacturers, the EU has drafted an implementing regulation (Implementing Regulation (EU) 2024/1866). 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 37.6%. The three Chinese manufacturers surveyed and their provisionally countervailing tariffs are:

• BYD: 17.4%
• Geely: 19.9%
• SAIC: 37.6%

Other Chinese BEV producers that cooperated in the study but were not included in the sample are subject to a weighted average tariff of 20.8%. This group can be found in the annex to the regulation. Non-cooperating companies are subject to a rate of 37.6%.

Implementation and further steps: EU to decide on permanent duties for Chinese BEVs

The regulation entered into force on 5 July 2024 and will be in force for four months. Within this period, EU member states must vote on final duties. When approved, they will be final 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 within the EU is protected and 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.