The European Union (EU) has slightly revised its proposed tariffs on electric vehicles imported from China, following additional information from affected companies, according to an anonymous source familiar with the matter. The new provisional rates, which will be applied on top of the existing 10 per cent duty, are as follows: Chinese electric vehicle producers that co-operated with the investigation but were not sampled will face a weighted average duty of 20.8 per cent. Companies that do not co-operate will encounter a higher levy of 37.6 per cent. Earlier this month, the European Commission, the EU's executive body, notified these companies of the impending tariffs. The decision came after an investigation into subsidies provided by China and its state-backed banks to benefit these manufacturers. These provisional tariffs are scheduled to take effect on July 4, with definitive duties set to be implemented by November. Tesla Inc. has requested to be sampled and may receive an individually calculated duty rate during the definitive stage. China has responded with threats of retaliation, launching an anti-dumping probe on pork imports and anticipating findings from an investigation into EU spirits in the coming months. Beijing has warned of potential tariffs on agricultural goods, aviation, and high-engine-capacity cars. Carmakers and EU member states, notably Germany, have been urging negotiations between the EU and China. Discussions are ongoing, focusing on compliance with World Trade Organisation rules and addressing the core issues at hand. Reportedly, Beijing has sought to shift talks into a bartering process and has been pressuring EU member states individually. The EU clarified that these provisional duties will be introduced with a guarantee, collected only if definitive duties are ultimately imposed, as stated in a previous EU statement. Attribution: Bloomberg.
