EU lowers tariffs on Chinese EVs before Sept 25 vote

The European Commission is reportedly considering another tariff reduction on Chinese electric vehicles (EVs) before the September 24 vote. 

On September 25, 2024, the 27 member states of the European Union will formally vote on the Commission’s tariffs for China-made EV imports. The vote will decide whether or not the EU will sustain the new tariffs over the next five years. 

China’s Minister of Commerce, Wang Wentao, is in Europe, discussing the tariffs with several influential leaders in the EU. On September 19, 2024, Wang will meet with EU Trade Commissioner Valdis Dombrovskis. The Chinese Minister already visited Italy. Wang’s objective in Europe is to persuade enough EU leaders to support China’s remedial proposals regarding the Commission’s tariffs.

The tariffs on China-made EV imports were provisionally imposed on July 5, 2024. So far, the Commission has rejected all of China’s remedial proposals over its provisional tariffs. However, it has also reduced its tariff rates from 38% to 36.3%. It is reportedly considering another reduction, down to 35.3%, before the vote on September 25. 

The Commission might also reduce the individual tariff rates for specific automakers, including Chinese car makers BYD, Geely, and SAIC. It is already reportedly reducing tariffs on China-made cars carrying foreign brands, like Tesla. 

Initially, the Commission only granted individual tariff rates to China’s top three automakers, BYD, Geely, and SAIC.

However, upon Tesla’s request, the Commission investigated Giga Shanghai, resulting in Tesla vehicles receiving an individual tariff rate of 9%. The Commission is expected to lower Tesla’s rate to 7.8% before the September vote. 

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