Chinese EV Stocks Eye July 4 Deadline in European Tariff War

Group 1 - The European Union is set to activate provisional duties ranging from 17.4% to 38.1% on imported China-made electric vehicles (EVs) starting July 4, which will be in addition to the existing 10% duty [1][2] - Provisional duties can last for up to four months, after which the EU will decide on the implementation of final duties, with a deadline for this decision set for November 3 [1][2] - The EU's motivation for these tariffs stems from concerns over China's subsidization of its EVs, which is perceived as a threat to domestic production and sales [1][2] Group 2 - Negotiations between the EU and China are scheduled to take place in Brussels, with China aiming to halt the tariffs before they take effect [2] - The EU has emphasized that any negotiated outcome must effectively address the issue of subsidization that harms local industries [2] - Both the EU and China face risks; additional tariffs could weaken China's EV market position, while retaliation from China could adversely affect European automakers like Mercedes Benz and BMW [2][3] Group 3 - Many European automakers have significant operations in China, which could lead to complications if China retaliates with tariffs against these companies [3] - BMW's CEO has publicly criticized the decision to impose additional import duties, indicating industry pushback against the tariffs [3] - Shareholders of Chinese EV stocks are advised to remain patient for further updates regarding the tariff situation [3]