EU tariffs on Chinese EVs face widespread opposition

EU tariffs on Chinese EVs face widespread opposition and while China calling the action irrational and protectionist.

The European Union’s (EU) decision to impose five-year countervailing duties on Chinese-made electric vehicles (EVs) has met with strong opposition, with China calling the action “unfair, unreasonable, and biased.”

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), representing China’s automotive industry, expressed “great regret” over the EU’s decision to apply anti-subsidy tariffs to Chinese EVs.

The tariffs, effective Wednesday, vary by company: 17% for BYD, 18.8% for Geely, and 35.3% for SAIC, with other cooperating firms subject to a 20.7% duty. Non-cooperating companies face the highest rate of 35.3%, while Tesla, following a separate review, will face a 7.8% duty, as noted by the European Commission.

The CCCME criticized the EU’s final ruling, citing a lack of transparency and a failure to correct “incorrect findings,” which it claims violate World Trade Organization (WTO) and EU anti-subsidy rules.

The China Association of Automobile Manufacturers (CAAM) also condemned the decision as biased and detrimental to Chinese auto companies, noting that it undermines free trade principles and harms EU-China automotive cooperation, as well as green development.

China’s Ministry of Commerce (MOC) spokesperson stated Wednesday that China opposes the EU’s additional tariffs on Chinese EVs, calling the investigation irrational and protectionist.

China has already appealed to the WTO over the issue and will continue to protect its companies’ rights, the MOC spokesperson added.

SAIC Motor, which faces a 35.3% duty, announced plans to challenge the EU’s decision in the Court of Justice of the European Union, arguing that the EU made errors in identifying subsidies and overlooked key information, potentially raising costs for European buyers.

Continuing Consultations

While announcing the tariffs, the European Commission mentioned that discussions with China continue toward WTO-compliant solutions and remains open to negotiation on price undertakings.

China’s MOC reiterated its preference for resolving trade issues through dialogue, with both sides now entering a new phase of consultations aimed at finding a mutually acceptable solution to avoid escalating trade tensions.

The CAAM and CCCME both expressed hope for a balanced resolution, with the EU approaching talks sincerely and pragmatically to stabilize global automotive supply chains.