EU may set retroactive tariffs for Chinese EVs

The European commission will start customs registration of Chinese electric vehicle (EV) imports on Thursday, meaning they could be hit by tariffs from that point if the EU’s trade investigation later concludes that they are receiving unfair subsidies.

The commission is carrying out an anti-subsidy investigation into Chinese battery EVs to determine whether to impose tariffs to protect EU producers. The probe is due to conclude by November, though the EU could impose provisional duties in July.

In a document published on Tuesday, the commission said it had sufficient evidence tending to show Chinese EVs were being subsidised and that imports had increased by 14% year on year since the investigation was formally launched in October.

It said EU producers could suffer harm, which would be difficult to repair, if Chinese imports continued at this accelerated rate before the conclusion of the investigation.

The China Chamber of Commerce to the EU said that it was disappointed by the move and that the surge of imports reflected increasing European demand for EVs.

Reuters