European Union: tariffs up to 38.1% on imports of Chinese electric vehicles

Additional tariffs of up to 38.1% on electric vehicles imported from China will be imposed by the European Union from July.

European Commission officially notified Chinese automakers, including BYD Co., Geely Automobile Holdings Ltd. and SAIC Motor Corp. on tariffs that will apply as of July 4, following an investigation into subsidies launched last year. Chinese electric vehicle manufacturers are increasingly moving into Europe amid a domestic price war and years of efforts to create an advantage in technology development.

Individual tariffs for BYD will be 17.4%, for Geely 20% and for SAIC 38.1%, the commission said on Wednesday. Other manufacturers not included in the commission's sample will be subject to a 21% duty, and automakers that did not cooperate with the investigation EUwill be subject to a duty of 38.1%.

The new measures will also affect Western automakers. Shares of Chinese electric vehicle makers fell in Hong Kong ahead of the EU decision. Geely Automobile Holdings and XPeng Inc. fell about 8% this week, while industry leader BYD Co lost about 3%, Bloomberg noted.

While the survey was aimed at Chinese automakers, the rate increase, from 10% currently, will also hit a number of Western automakers led by Tesla, which ships its Model 3 from Shanghai to Europe, as well as BMW AG and Renault SA. Currently, the markup on imports of passenger cars from Europe to China is 15%.

The measures come as the EU struggles to find a compromise between protecting the region's auto industry and a green program aimed at removing CO² from transport.

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