Possible tariff adjustments

There are reports that the European Union has made slight adjustments to the proposed tariffs on some imported electric vehicles from China after obtaining more information about companies affected by tariff increases. According to insiders, SAIC Group's tariffs will be lowered from 38.1% to 37.6%, and Geely Automobile's tariffs will be lowered from 20% to 19.9%. However, BYD's tariffs remain unchanged at 17.4%.

Tariff situation of other Chinese car companies

Chinese electric vehicle manufacturers who did not participate in the sampling survey but cooperated with the survey will be subject to a weighted average tariff of 20.8%, while companies that did not cooperate with the survey will be subject to an additional tariff of 37.6%. Earlier this month, the European Commission notified these companies of the situation regarding tariffs and launched an investigation into subsidies provided by China and its state-owned banks to automobile manufacturers.

Temporary and final tariffs

Temporary tariffs will begin to be imposed on July 4th, and the final tariffs are expected to start in November. Tesla, which has a factory in China, can receive a separately calculated tax rate during this determination stage after receiving a sampling request.

Escalation of tensions between China and Europe

After the EU insisted on imposing tariffs, China has repeatedly expressed dissatisfaction. Subsequently, China launched an anti-dumping investigation into pork imports from the European Union and plans to release the results of the investigation into EU alcoholic beverages in the coming months. Beijing has warned that tariffs may affect trade in agricultural products, aviation, and large engine vehicles.

Progress of negotiations

Some car manufacturers and EU member states, including Germany, are pushing for negotiations between the EU and China on future trade routes. The EU stated that any solution must be based on the rules of the World Trade Organization (WTO) and address fundamental issues.