EU Electric Vehicle 'Tariff Bomb' Met with China's "Disagreement... Negotiations Continue"

The European Union (EU) decided to impose a 'tariff bomb' of up to 45.3% on Chinese electric vehicles, prompting China to express opposition while stating its intention to continue negotiations.

On the 30th, the Chinese Ministry of Commerce posted a statement on its website under the spokesperson's name, saying, "China neither agrees with nor accepts this ruling."

[Image source=AFP Yonhap News]

The spokesperson said, "We have filed a complaint under the World Trade Organization (WTO) dispute settlement mechanism," and added, "We will continue to take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese companies."

China noted that the EU has sought to continue negotiations regarding the sales prices of Chinese electric vehicles within Europe.

The spokesperson stated, "Currently, negotiation teams from both sides are conducting a new phase of consultations," and expressed hope that "Europe will cooperate constructively and adhere to the principles of 'pragmatism and balance' so that both sides can reach each other's core concerns," adding, "A mutually acceptable solution should be found as soon as possible to avoid trade friction."

Based on the results of the anti-subsidy investigation, the European Commission decided to impose definitive countervailing duties on Chinese electric vehicles for five years starting from midnight on the 30th. Accordingly, electric vehicles will face additional tariffs ranging from 7.8 to 35.3 percentage points on top of the existing general tariff rate of 10%. The final tariff rate will be between 17.8% and 45.3%.

According to foreign media on the same day, the China Chamber of Commerce to the EU, representing Chinese companies, also condemned the tariff imposition as a protectionist decision and urged its suspension. In a statement, the Chamber expressed "deep regret and dissatisfaction with the EU's decision motivated by political reasons."

Meanwhile, major foreign media outlets analyze that China is likely to take retaliatory measures. This year, China conducted anti-dumping investigations targeting European brandy, dairy products, and pork.