Brussels, Belgium

After the EU member states vote on proposed tariffs this Friday, sources indicate that the European Commission will maintain discussions with China concerning EV imports. This decision is linked to an investigation into EVs made in China that seeks to eliminate subsidies.

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The tariff proposal has been forwarded by the EU Commission to its 27 member entities urging approval of the rates from September. The expected ballot will establish whether these final import taxes are enacted for five years. If the votes are positive the EU’s regular 10% car import tax would rise with the tariffs.

A recital accompanying the tariff proposal shows that talks with China have not yet resolved the issue regarding the claimed subsidies. The statement reveals that talks based on finding common ground are foreseen to continue even if the outcome from voting is unfavorable. The Commission has no comment on the status of the ongoing talks.

China’s Ministry of Commerce reported that talks are in progress concerning a price-commitment plan to steer clear of tariffs. The possible framework might include setting minimum import costs and regulating volumes which earlier suggestions from Chinese companies faced rejection by the Commission.

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Tariff proposals differ widely; like 7.8% on Tesla vehicles from China compared to 35.3% on those from companies such as SAIC who have not assisted the Commission review. 

On Friday the vote needs 15 European countries to oppose the tariffs with 65% EU population representation for non-enactment. By October 30th the EU must finalize its findings regarding the anti-subsidy matter.

Should the tariffs be set in stone companies must pay the provisional duties installed in July that they can afford using their bank guarantee.