EU Considers Tariffs on Chinese EVs Amid Intensified Talks

The European Commission is negotiating with China to potentially avert tariffs on Chinese electric vehicles, notwithstanding ongoing anti-subsidy investigations. The EU's 27 members are set to vote on proposed final tariffs by Oct. 30. Talks could continue even after tariff imposition, with potential re-examinations of price undertakings.

The European Commission is maintaining its negotiation efforts with China to avoid tariffs on Chinese electric vehicles, despite these tariffs potentially being imposed soon. According to a senior EU official, the Commission is in the midst of an anti-subsidy investigation regarding EVs exported from China and has submitted its tariff proposal to the EU's 27 members, with a vote set for Friday.

While an additional text recited that current talks have not yet resolved the subsidy dispute, it highlighted that negotiations could persist even if tariffs are agreed upon. The Commission has indicated a willingness to reconsider price undertakings, such as minimum import prices and volume caps, previously suggested by Chinese companies but initially declined.

Martin Lucas, the Commission’s director-general for trade defense, informed the European Parliament of intensifying technical discussions with China, which may continue beyond October. Despite legal deadlines mandating final measures by Oct. 31, Lucas stressed that solutions could still be reached post-deadline. Proposed tariffs range from 7.8% to 35.3%, and EU members’ votes will determine their implementation for the next five years, unless vetoed by a significant majority. Provisional duties enacted in July would also become payable if definitive tariffs pass.