EU’s “Secondary” Adjustment of Chinese Auto Tariffs
The EU is making a second round of changes to its tariffs on cars imported from China; Tesla’s tariff rate has been reduced from 9% to 7.8%, from 20.8% before, which the EU adjusted last month after the US automaker appealed. Meanwhile, Geely Auto’s tariff has been reduced from 19.9% to 19.3% last month and has now been reduced to 18.8%.
According to other sources, BYD’s tariff remains at 17%, while the tariffs on cars from SAIC Motor, the parent company of MG, which the EU claims refused to cooperate with the investigation, have been reduced from 36.6% to 35.3%. Automakers such as Chery and Weilai will bear a 20.7% tariff, and each tariff is levied on top of the regular 10% tariff on imported cars.
In addition to Germany and Spain, Sweden, Norway and other countries have also made similar statements. Some media reports say that the EU may slightly reduce tariffs on Chinese electric vehicles. China and the EU will continue to discuss the matter.
After the EU announced tariffs on Chinese electric vehicles in 2023, German Chancellor Scholz said in an interview with Bloomberg, “We want to sell our cars everywhere, including Europe, North America, Japan, China, Africa, South America. But this means that we are also willing to buy cars from other countries.”
Bloomberg said that in addition to Germany and Spain, Sweden is also skeptical of the EU’s position. Swedish Prime Minister Kristersson said in May that the EU should not “disintegrate global trade” and that “for industrialized countries such as Germany and Sweden, a broader trade war that blocks each other’s products is not a way out.”
Bloomberg quoted unnamed people familiar with the matter as saying that Chinese and EU officials are expected to meet later this month to discuss whether an agreement can be reached before the tariffs take effect. But a senior diplomat from an EU country that supports tariffs said they still believe that most member states will support tariffs and will persuade Spain to support the European Commission on this issue.
Bloomberg pointed out that if the majority of member states fail to block the tariff measures, the European Commission will announce the final rules for the five-year tariffs by October 30.