The EU has released a list of tariffs on Chinese electric vehicles, with Tesla receiving 7.8%, BYD 17.0%, and the highest increase being 35.3%.

The European Commission announced on 29 October that it had concluded its anti-subsidy investigation into battery electric vehicles (BEVs) imported from China, deciding to maintain additional tariffs which came into effect on 30 October. Price undertakings will remain under discussion.

The European Commission formally initiated an anti-subsidy investigation into imported electric vehicles (EVs) originating from China on 4 October 2023, and voted to impose additional tariffs on BEV imports from China. These tariffs will be levied on top of the original 10% rate, with different EV manufacturers facing varying rates. The final duty rates published in the Official Journal are as follows:

Electric vehicle manufacturers that cooperated with the investigation but were not sampled face an additional tariff of 20.7%, while other non-cooperative companies face 35.3%. NIO (NYSE: NIO), XPeng (NYSE: XPEV), and Leapmotor are listed as cooperating manufacturers not sampled and will face the 20.7% additional tariff.

Despite the EU’s decision to impose countervailing duties on Chinese electric vehicles, both parties continue to explore alternative solutions. According to a prior statement from CCCME, following the European Commission’s disclosure of its final ruling on the countervailing investigation on 20 August, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) submitted a price undertaking proposal to the European Commission on 24 August, authorised by 12 electric vehicle manufacturers.

On 16 October, CCCME stated that over 20 days since 20 September, technical teams from China and the EU held eight rounds of consultations in Brussels but failed to reach a mutually acceptable solution. On 25 October, the European Commission indicated that it and the Chinese side had agreed to hold further technical negotiations soon on possible alternatives to tariffs on Chinese-made electric vehicles.

In yesterday’s statement, the European Commission reiterated its willingness to negotiate price undertakings with individual exporters where permitted under EU and WTO rules. However, China has objected to this approach, with CCCME on 16 October accusing the Commission’s actions of undermining the basis for negotiations and mutual trust, thereby damaging bilateral consultations.