EU feels heat from all sides as decision on Chinese EV duties looms
- Some EU member states with major automotive ties to China are voicing their opposition to any push to match US import tariffs, or to impose any duties at all
- Brussels is thought to have gathered ample evidence that subsidies from Beijing exist in the sector, and that they have distorted the European market
EU investigators are putting the finishing touches on a blockbuster probe of subsidies in China’s electric vehicle sector, but pressure is mounting from all sides as they decide what to do next.
A decision on whether to impose provisional duties on EVs made in China is expected close to a June 5 deadline, with Brussels thought to have gathered ample evidence that subsidies in the sector exist, and that they have distorted the European market.
The outcome, then, rests on a political decision by the European Commission, the ramifications of which became more complicated this week.
US President Joe Biden’s plan to impose 100 per cent import tariffs on made-in-China EVs is seen as a way to force Brussels to act, and also to give the commission a benchmark against which to calculate higher duties.
18:59
Why the EU, US are concerned about China’s overcapacity
“I think this ramps up the pressure for the EU to put tariffs on Chinese EVs as well, in the higher part of the 20 to 60 per cent bracket,” said Rem Korteweg, an expert in trade and geopolitics at the Clingendael Institute, a Dutch think tank.
