Europe Tells China’s Carmakers: Get Ready to Pay Tariffs

The European Union took the next step on Thursday toward collecting new tariffs on Chinese electric cars, telling automakers to obtain guarantees from banks that they would be able to pay the taxes set to be made final in October.

The move was expected. The bloc had said on June 12 that it would impose additional tariffs of 17 to 38 percent on electric vehicles imported from China. An investigation by the European Union had found what officials in Brussels describe as unfair subsidies by the Chinese government for electric car manufacturers.

The Chinese government has denied that it subsidizes the industry. Beijing contends that low prices for electric cars made in China reflect vigorous competition and innovation instead.

The two sides began talks on June 22 to try to resolve the dispute. “We are continuing to engage intensively with China on a mutually acceptable solution,” said Valdis Dombrovskis, the E.U. trade commissioner.

The imposition of provisional tariffs requires automakers to provide European countries with financial guarantees of eventual payment, although they do not need to send money yet.

The provisional tariffs vary considerably by automaker based on the European Union’s estimates of the scale of each Chinese manufacturer’s government subsidies. The highest tariffs are being imposed on manufacturers that disclosed little about their subsidies, including a tariff of 37.6 percent on SAIC Motor. Lower tariffs apply to BYD, at 17.4 percent, and Geely, at 19.9 percent.