In response to feedback received from the companies most impacted by the proposed tariffs, the European Union (EU) has reportedly revised its plans regarding tariffs on Chinese electric vehicle (EV) imports. The revisions come after the EU conducted an anti-subsidy investigation, which began in 2023, and resulted in new provisional tariffs being introduced on battery electric vehicle (BEV) imports from China.

The new tariffs, scheduled to take effect on July 4, 2024, will affect not only Chinese automakers but also non-Chinese automakers producing vehicles in China, such as Tesla. The tariffs, ranging from 20% to 38%, will be imposed in addition to the existing 10% tariff on these vehicles.

Among the affected Chinese automakers, BYD received a provisional rate of 20%, while SAIC was hit with a rate of 38.1%. Geely, on the other hand, faced a provisional rate of 20%. However, according to sources from Bloomberg, the EU has made slight adjustments to the rates for SAIC and Geely. SAIC Motor Corp.'s new provisional rate is now 37.6%, while Geely Automobile Holding's rate has dropped to 19.9%. The rate for BYD remains unchanged.

China, however, is not satisfied with the revised tariffs. The country's Ministry of Commerce has accused the EU of escalating trade tensions with the new tariffs on Chinese EV imports. In response, China has begun taking retaliatory measures, launching an anti-dumping probe on pork imports from the EU and initiating an investigation on spirits from Europe. Furthermore, China is considering imposing a 25% tariff on foreign car imports with large engines.

Despite the challenges posed by the revised tariffs, some Chinese automakers, like BYD, seem to be less affected. According to the Rhodium Group, BYD is expected to continue making substantial profits from the sale of electric vehicles in Europe, despite the new tariffs.

These developments highlight the ongoing trade dispute between the EU and China, as both sides navigate the complexities of import tariffs and subsidies in the EV industry. It remains to be seen how this trade tension will ultimately impact the global electric vehicle market and the relationships between these economic powerhouses.