The European Union (EU) has left room for negotiation by slightly lowering the additional tariff rates on Chinese electric vehicles compared to earlier forecasts. However, the Chinese Ministry of Commerce expressed concerns, firmly opposing the EU's tariff-related decisions.
According to the draft final tariff decision announced by the EU Commission on the 20th (local time), the additional tariff rate on Chinese electric vehicles was set at 17.0 to 36.3 percentage points (p). This is a slight downward adjustment following the previous reduction from the initially forecasted maximum additional tariff rate of 38.1%p in June to 37.6%p last month. If finalized, the final tariff rate will range from 27.0 to 46.3%, including the existing general tariff of 10%. The draft final tariff, released on this day, will undergo a vote by 27 countries and is scheduled to be published in the official journal by October 30, after which it will be enforced for five years.
Olof Zill, EU Commission spokesperson for trade, emphasized during a regular briefing, "Today's preliminary disclosure of the (final tariff rates) is part of the procedure to inform stakeholders," adding, "I want to make it clear that no final political decision has been made yet."
Zill further stated, "The EU is open to working with the Chinese government to find an effective solution that complies with World Trade Organization (WTO) rules." When asked whether additional tariffs could be nullified depending on negotiation outcomes, he explained, "It is up to China to propose a method that complies with the WTO and addresses the issue of illegal subsidies." The EU also announced that the provisional tariffs imposed temporarily since the 5th of last month will effectively be considered nullified.
However, the Chinese Ministry of Commerce continues to take a stance of opposition. In a statement released on the same day, a spokesperson claimed that the EU's investigation violated principles of objectivity, fairness, non-discrimination, and transparency, and did not comply with WTO regulations. The statement added, "Despite insufficient consideration of China's views, the EU persists in wrongful practices, sets high tariff rates, and distorts the investigation results of Chinese companies," pointing out that "the published investigation results are a unilateral decision by the EU, not facts recognized by both parties."
The spokesperson urged that "China will take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese companies" and called for resolving the related disputes through consultations.
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