Asia Tech Wire (July 5) -- The European Commission on Thursday formally announced the imposition of provisional duties on Chinese imports of battery electric vehicles (BEVs), nine months after launching an anti-subsidy investigation.

Under its latest tariff policy on electric vehicles, the EU will impose additional tariffs ranging from 17.4% to 37.6% on Chinese EVs, in addition to the previous 10% tariff.

The three Chinese automakers involved in the EU's anti-subsidy probe last October, BYD (1211.HK), SAIC Motor (600104.SH) and Geely (0175.HK), face additional tariffs of 17.4%, 37.6% and 19.9%, respectively.

In addition, other Chinese BEV makers that participated in the EU investigation but were not sampled are subject to a 20.8% weighted average duty.

Tesla, a U.S. company that exports electric cars from China, could get a separately calculated tax rate, and the company has said it will raise prices as a result of being taxed.

The bloc has also said it will impose an additional 37.6% tariff on Chinese companies that fail to cooperate with its investigation.

The EU will start implementing the latest policy from July 5, 2024 for a maximum period of four months.

With a four-month window before the EU's decision on the definitive duties, intensive negotiations between China and the EU are due to continue.

Valdis Dombrovskis, executive vice-president of the European Commission, said that the definitive duties, which will be effective for a period of five years, may not be implemented if a mutually beneficial solution emerges.

Besides the tariffs on electric cars, the European Commission has also begun investigating allegations that China subsidizes companies in areas such as clean energy and safety equipment.