The European Commission has announced that, starting July 5th, temporary countervailing duties will be imposed on electric vehicles imported from China. This measure aims to counteract substantial subsidies provided by the Chinese government to its electric vehicle industry. EU member states will vote on whether to make this a long-term policy; if approved, the duties will last five years. Specifically, the duty rates for major automakers BYD, Geely, and SAIC are set at 17.4%, 19.9%, and 37.6% respectively, while other cooperative but less investigated Chinese automakers will face an average tariff of 20.8%, and non-cooperative ones will be charged 37.6%(euronews). Additionally, according to a July 3 report from the Financial Times, the European Commission plans to impose import duties later this month on purchases below 150 euros from non-EU e-commerce platforms, which are currently duty-free.
ZJS_Rubber anticipates that as the EU plans to impose duties on certain previously duty-free goods, European companies importing rubber sealing products might incur additional costs. Particularly, clients using FOB or CIF terms will face increased import clearance expenses. For those employing DDP terms, these additional costs might be reflected in the final price of the products.
In response to this change, ZJS_Rubber assures that should these new duties be implemented, we will not pass the full cost onto our customers. To maintain long-term partnerships, we will absorb 70% of the increased costs ourselves, ensuring minimal price fluctuations compared to the prices agreed upon in existing contracts. Just like the challenges we have faced together with our clients: U.S. tariff sanctions, the COVID-19 pandemic, and the Red Sea incident. For those currently collaborating with ZJS_Rubber and those considering a partnership, you need not worry excessively about this matter. ZJS_Rubber is committed to supporting your business to the fullest extent.
