Here are some basic facts about the EU's planned tariffs:
WHAT DID THE EUROPEAN UNION DO?
The European Commission, the EU's executive arm, said the preliminary results of its ongoing investigation into Chinese EV subsidies show that the country's battery electric vehicle "value chain" benefits from "unfair subsidization" that hurts EU rivals. It plans to impose provisional tariffs of up to 38.1% on electric vehicles shipped from China. That's on top of the 10% duties for all imported EVs.
The commission took aim at three of the biggest Chinese EV players in Europe, saying it would impose extra duties of 17.4% on electric cars from BYD, 20% on those from Geely and 38.1% for vehicles exported by China's state-owned SAIC.
Geely owns a stable of popular brands, including Polestar, British sports car maker Lotus and Sweden's Volvo, while SAIC owns Britain's MG, one of Europe's bestselling EV brands.
Other EV manufacturers in China would be subject to duties of at least 21%.
The commission said it has reached out to Chinese authorities to "explore possible ways to resolve the issues" but if those discussions don't result in an effective solution, the duties will take effect on July 4.
WHY DID THE COMMISSION TAKE ACTION?
The value of battery-powered cars imported to Europe skyrocketed from $1.6 billion in 2020 to $11.5 billion last year, according to research firm Rhodium Group. Most of the imports are from Western automakers with factories in China, including Tesla and BMW.
But EU officials complain Chinese's homegrown automakers are gobbling up market share by undercutting European car brands on price thanks to Beijing's massive subsidies.
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