The European Union on Wednesday threatened to impose strict sanctions on Chinese electric vehicles after confirming illegal support for the industry from the Chinese government subsidies.
According to a report from the EU, the subsidies provided by the Chinese government pose an economic threat to producers within the member-states.
There’s an expectation that the commission might resolve the issues with the Chinese companies before the imposition of the new tariff.
Based on the report, the EU said it would impose provisional duties worth 38.1% on imports of Chinese electric vehicles, and provisional levies would differ between producers at 17.4% on BYD cats, 20% on Geely, and 38.1% on SAIC vehicles.
The European Union followed the footpath of the United States which had earlier imposed its tariff on Chinese electric cars by 100%.
Brussels has released a report on the increment of the tariffs saying it would come into force by July 4, while the anti-subsidy investigation will continue until November 2.