The United States Trade Representative, Dai Qi, welcomed the latest actions taken by the European Union regarding the anti-subsidy investigation on pure electric cars imported from China.
“I welcome the EU’s decision on Friday to impose anti-subsidy tariffs on pure electric cars imported from the People’s Republic of China. This is a significant first step in defending the interests of European industry and its workers. It is an important step as we need to confront China’s non-market policies and actions,” Dai Qi stated in a press release.
“We know there is more work to be done and look forward to continuing engagement with the EU and other market economies on these critical issues to promote our market-oriented approach for collective economic security and prosperity for industries and workers,” the statement mentioned.
As part of the anti-subsidy investigation into electric cars imported from China, the European Commission announced on October 4th that its proposal to finally impose anti-subsidy tariffs has received necessary support from EU member states. They will pass the implementing regulation by October 30.
The European Commission initiated the anti-subsidy investigation into Chinese electric cars at the end of 2023 and introduced temporary tariffs in July 2024. According to the revised proposal, Chinese manufacturers will face additional tariffs ranging from 7.8% to 35.3%, in addition to the existing 10% normal EU import tariffs on cars.
On September 13th, the U.S. government confirmed a significant increase in import tariffs on Chinese products, including a 100% increase on electric cars, to enhance protection of domestic strategic industries from the impact of overproduction driven by Beijing.
According to a press release from the U.S. Trade Representative’s Office, many tariffs took effect on September 27, including the 100% tariff on Chinese electric cars, a 50% tariff on solar panels, and a 25% tariff on steel, aluminum, electric car batteries, and key minerals.
The statement from the U.S. Trade Representative’s Office on Monday mentioned that the U.S. and EU are cooperating through various forums such as the U.S.-EU Trade and Technology Council Global Trade Challenges Working Group, G7, Large Civil Aircraft Working Group, Global Steel and Aluminum Agreements, and other forums to find effective ways to address common challenges faced.
“These challenges are related to China’s comprehensive non-market policies and actions, including its industrial positioning policies, which are undermining our workers and industries,” the statement noted.