Berlin, July 8, 2024 – German automaker BMW has asked the European Commission to lower tariffs on its Chinese-made electric Mini, according to a person familiar with the matter. The current tariff on the vehicle is the highest provisional rate of over 37%.
The European Commission imposed provisional anti-dumping tariffs on electric vehicles imported from China late last week, nine months after launching an anti-dumping investigation. The tariff rate for companies that the EU deemed as non-cooperative during the investigation was set at the highest possible level of 37.6%. For cooperating companies, the tariff was set at 20.8%.
Automakers have until July 18 to comment on the tariffs, and BMW is lobbying Brussels to change the tariff on its electric Mini to 20.8%. The problem for the Mini is that it has only been produced in China for a few months, and in that short time, the BMW-Great Wall Motor joint venture was not able to meet the conditions to be classified as a cooperating company in the investigation. As a result, the highest possible tariff was automatically applied to the Mini.
BMW management is generally opposed to import tariff policy. Shortly after the EU announced plans to impose import tariffs on electric vehicles made in China, BMW CEO Oliver Zipse said that tariffs are not the best solution and that the European Commission is actually harming European businesses. The tariffs are also raising concerns among other German automakers, including Volkswagen, particularly due to the risk of a trade war that could result in retaliatory import tariffs on cars exported from Germany to China.
Nervousness is also growing among companies outside the automotive sector, currently most notably among cognac and pork producers. This is because the day after the EU decision to impose provisional import tariffs on electric vehicles made in China, Beijing announced further steps in its anti-dumping investigation into imports of cognac from the European Union. The Ministry of Commerce announced late last week that the development of the ongoing investigation will be discussed on July 18.
In addition to cognac, China has also begun investigating alleged price dumping in the case of imports of pork from the EU. It launched an investigation into imports of pork from the European bloc in mid-June, shortly after the European Commission announced that it would impose anti-dumping duties on electric cars made in China from July.
In the case of cognac, France would be the hardest hit, particularly companies like Pernod Ricard and LVMH. The latter has already indicated that the anti-dumping investigation into imports of cognac from the EU into China is clearly a retaliation for EU import tariffs on electric vehicles from China. In the case of pork, Spain, Denmark and the Netherlands will be the most affected. However, France will also be partially affected again, as it is also a major producer of pork within the EU.
Tags: BMW, Electric vehicles, Tariffs, China, European Union, Trade war, Cognac, Pork
Interesting facts from the article:
- The EU has imposed provisional anti-dumping tariffs of up to 37.6% on electric vehicles imported from China.
- BMW is asking the EU to lower the tariff on its Chinese-made electric Mini to 20.8%.
- The EU’s tariffs have raised concerns among German automakers about the risk of a trade war with China.
- China has launched anti-dumping investigations into imports of cognac and pork from the EU.
- The EU’s tariffs and China’s retaliation could have a significant impact on businesses in both regions.
Source: Reuters
