The European Commission is prepared to continue negotiations with China over potential tariffs on Chinese electric vehicles (EVs), even if the tariffs are imposed, according to a senior EU official on Monday.
The Commission is conducting an anti-subsidy investigation into Chinese-made EVs and has sent its final tariff proposal to the EU’s 27 member states. A vote on the proposed tariffs is scheduled for Friday.
The proposed tariffs range from 7.8% for Tesla vehicles made in China to 35.3% for companies like SAIC that were found to be uncooperative in the investigation.
These would be on top of the EU’s standard 10% import duty on cars. Despite the possible imposition of tariffs, the Commission indicated that negotiations could continue. A recital attached to the proposal noted that discussions with China had not resolved the issue of alleged subsidies, but that further talks could take place even if the tariffs are approved.
Martin Lucas, director-general of trade defense for the Commission, told the European Parliament, “The conclusion of the investigation is not necessarily the end of consultations with China on finding a solution. The investigation has its own legal deadlines and we cannot miss them. Definite measures need to be in place by Oct. 31.” He also emphasized that “price undertakings or any other solutions can still be accepted after that date.”
Chinese automakers had submitted revised offers to the Commission, though they were still not deemed acceptable. However, some progress has been made, Lucas noted.
EU member states are set to vote on whether to approve the definitive tariffs, which would last for five years. A qualified majority—15 countries representing 65% of the EU population—is required to block the tariffs.
A final decision is expected by October 30, with provisional duties from July needing to be paid if the tariffs are imposed.
Source: Reuters
