The blowback against China’s support of its electric vehicle (EV) industry continued as the European Union (EU) on Wednesꦚday threatened to slap big new tariffs on Chﷺinese EV imports.

The European Commission announced that following an investigation that began last October, it has "provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers.”

The Commission noted that the three EV makers sampled—BYD, Geely, and S🌼AIC—would face duties of 17.4%, 20.0%, and 38.1%, respectively. Others that cooperated with the prob🎐e but weren’t sampled would be hit with a 21.0% tax, while the ones that didn’t cooperate face a 38.1% penalty.

The regulators explained that they have reached out to Chinese officials to discuss their concerns and try to reach a settlement. If that doesn’t happen, the tariffs would be in�ꦦ�troduced starting July 4. 

The Commission added that "following a substantiated request," Tesla (TSLA), which produces EVs in China, “may 𓃲receive an🌜 individually calculated duty rate at the definitive stage.” 

Decision Comes After U.S. Hik🐬꧂ed Tariffs on Chinese EVs

The European decision came about a month after President Joe Biden 澳洲幸运5开奖号码历史查询:boosted tariffs on Chinese EV imp💯orts to 100% from 25%, saying the move was aimed at protecting American workers “from China’s unfair trade practices.”

澳洲幸运5开奖号码历史查询:American depositary receipts (ADRs) of Chinese EV makers Nio (NIO) and Li Auto (LI) dropped 2.1% and 1.6%, respectively, as of 10 a.m. ET Wednesday, while shares of Tesla were 1.7% higher.