The EU has revised its proposed tariffs on Chinese EVs… but only in the slightest
A new report states that the European Union has slightly tweaked its proposed tariffs on imported EVs from certain Chinese automakers after those companies divulged more details of their businesses. The tariff cuts are marginal but could offer a shred of hope that the EU is still willing to negotiate said duties before they are imposed next week.
Another week, another chapter in the ongoing bluster of a potential trade war following proposed tariffs by the EU on Chinese-built EVs entering the region.
You probably know the backstory by now. The EU Commission opened an anti-subsidy probe into Chinese EV imports, deeming them unfair in competition, threatened new tariffs, the US imposed tariffs of its own quadrupled to 100%, etc.
Last we reported, Canada had joined the fracas, mulling tariffs on Chinese EVs to align with its US and EU trade partners. Meanwhile, China’s Ministry of Commerce had criticized the EU Commission’s anti-subsidy probing, claiming the requested details from foreign automakers were “unprecedented” and compared the probe to spy-like levels of inquisition.
Earlier this month, China’s Ministry of Commerce met in Beijing with several automakers subject to the EU probe, including state-owned SAIC and BYD. The meeting also included European automakers like BMW, Volkswagen, and Porsche, who have tried to help find a solution to avoid the Chinese government’s threats to “adopt firm countermeasures” and raise a provisional tariff on imported gasoline cars from the EU.
In a recent report, the EU has eased its proposed tariffs for some Chinese EV automakers, but only by mere percentage points.
EU reduces proposed tariffs for SAIC and Geely
According to a recent Bloomberg report, the EU has reduced some tariffs on Chinese EVs after receiving more information from automakers as part of its anti-subsidy probe. The news comes from someone familiar with the matter who spoke under the condition of maintaining anonymity.
Per the report, the following Chinese automakers will see reduced duties on EVs imported into the European market:
- SAIC: 37.6% (Previously 38.1%)
- Geely Automobile Holding: 19.9% (Previously 20%)
As you can see, the reduced tariff percentages are marginal but better than nothing, we suppose. The revised proposed tariffs will add to the existing 10% duty in the EU and apply to the other Chinese automakers—those who cooperated with the anti-subsidy and those who didn’t. Those proposed tariffs are an additional 20.8% (weight average duty) and 37.6% levy, respectively.
Rising EV automaker Build Your Dreams (BYD) was also mentioned in the EU tariff reduction report but will see no change to its proposed duties, which will be 17.4% if and when those tariffs take effect next.
Both China and the EU are reportedly still in talks at the negotiating table, and it appears the former is now settling for a bartered compromise rather than a complete abolishment of the new tariffs. We will keep a close watch on this ongoing story as the EU’s proposed tariffs are scheduled to initially go into effect on July 4 before definitive duties kick in this fall.
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Environment
U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
Oil futures, 5 years
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)
What’s going on in Illinois?
While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.
SOURCES: Chicago Business, Ray Cunningham; featured image by the author.
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The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.
We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.
SOURCE | IMAGES: XCMG.
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