EU to slap tariffs on Chinese EV imports after negotiations stall
Well, it finally happened.
On Tuesday, the EU confirmed it will impose tariffs of up to 35.3% on Chinese EV imports, on top of the existing 10% duty – as early as today.
Some context: China and the EU have been wrangling over the tariffs since Brussels launched an anti-subsidy probe targeting Chinese EVs last September.
- Beijing has both dangled carrots and brandished sticks to get the EU to compromise.
More context: Earlier this month, the EU voted to move forward with the tariffs, giving the European Commission until October 31 to implement them – and for negotiators to strike a deal to avert them.
The marathon negotiations to prevent the tariffs have reportedly stalled on how to implement price undertakings, which would require Chinese EV exporters to set minimum price floors for their exports.
- The Chinese side has pushed for a blanket agreement covering all EV exports, whereas the EU has insisted on a tailored approach that would vary by company.
Chinese state media outlets accused the EU side of a “lack of sincerity” in negotiations.
- On Wednesday, the Ministry of Commerce castigated the EU decision but has not announced any countermeasures.
The exasperation apparently runs both ways, with a senior EU official remarking (SCMP):
- “We basically disagreed on [every] fact, [and every] legal argument of any importance.”
So what now? While the tariffs are a dead cert, the two sides will continue negotiating price undertakings – in hope of rolling them back in the future.
Get smart: China doesn’t want a trade war.
- Beijing will carefully calibrate its response and target EU industries that it has already singled out, like pork, dairy, and brandy.