EU-China talks on tariffs on electric cars
Later, at a press conference, Sánchez said that Spain and China had more issues on which they agreed than disagreed, and stressed the need to maintain dialogue at the highest level. He also admitted that bilateral relations needed to be rebalanced because there was a trade deficit between the EU and China. “We do not want a trade war from which no one will benefit,” he repeated.
The EU’s gesture towards Chinese producers
Along with the decision to impose additional tariffs on Chinese electric cars, there was information confirmed by Reuters that EU authorities would reduce tariffs on Chinese cars from Tesla and Geely. Vehicles from the former company will be subject to a rate of 7.8 percent instead of 9 percent, while Geely cars will be subject to 18.8 percent instead of 19.3 percent. The European Commission also abolished the additional 20.8 percent duty on Tesla cars, but declined to comment, as did the carmaker.
The maximum rate is 35.3 percent. It will affect SAIC and other automakers in China that are not cooperating with the Brussels investigation. BYD Group will be subject to an unchanged rate of 17 percent.
Americans raise customs duties
The Office of the Special Trade Representative (USTR) announced on Friday, September 13, that new tariffs on imports from China will go into effect on September 27, designed to protect strategic industries and companies in the United States from the activities of state-backed Chinese companies. The tariffs will be 100 percent on electric vehicles, 50 percent on solar panels, and 25 percent on electric vehicle batteries, steel, aluminum, and essential minerals. A 50 percent tariff on semiconductors used in the production of solar panels (silicon and polysilicon wafers) will go into effect from early 2025.
The decision comes after more than two years of reviewing tariffs announced by President Trump. They were left largely unchanged by the Biden administration after announcing the big hikes in May. They included a 25 percent rate on lithium-ion batteries, minerals and components. The Biden administration has maintained Trump-era tariffs on more than $300 billion worth of Chinese goods, from toys and T-shirts to routers and internet machines, ranging from 7.5 percent to 25 percent.