EU progresses in probe of Chinese electric vehicles, hints at potential tariffs

The probe, initiated in October amid concerns over alleged Chinese state subsidies distorting the market, could lead to provisional measures being implemented by July 4, the legal deadline for such actions.

Brussels has been widely anticipated to impose provisional duties on imports of new battery-powered vehicles from China, with claims that substantial subsidies are artificially lowering prices and disadvantaging European manufacturers. Dombrovskis hinted at forthcoming steps, indicating that developments could occur before the summer recess.

The Commission’s inquiry, highlighted in President Ursula von der Leyen’s State of the European Union address, responded to calls from the French government for enhanced European industrial defenses against China’s burgeoning electric vehicle sector. The move has sparked tensions with China and raised concerns of a potential escalation in trade disputes.

While Dombrovskis remained cautious about specifying exact timelines, citing legal constraints, he emphasized the Commission’s commitment to adhere to prescribed procedures. The possibility of announcing provisional measures before or after the European Parliament election in June was not explicitly confirmed, underscoring the procedural complexities involved in such decisions.