Shares of Chinese electric vehicle stocks have fallen premarket Wednesday after Bloomberg reported that the European Union is set to impose further tariffs of as much as 38.1% on electric vehicles shipped from China as of next month.
Li Auto Inc . (NASDAQ:LI) is down over 2% premarket, while NIO Inc. (NIO) has declined over 3%. XPeng Inc. (NYSE:XPEV) has edged just 0.3% lower.
According to Bloomberg, the EU formally notified carmakers such as BYD, Geely Automobile, and SAIC Motor of the levies due to be implemented around July 4. It follows an investigation of subsidies that started last year.
The publication adds that individual duties on BYD will be 17.4%, Geely 20% and SAIC 38.1%. Furthermore, other EV companies that haven’t been sampled by the commission will be subject to a duty rate of 21%, while carmakers that didn’t cooperate in the EU investigation will be subject to 38.1%.
It is said China has signaled its intent to retaliate, threatening measures across other industries such as agriculture, aviation and cars with large engines.
However, Bloomberg notes that the higher rates will also impact a range of Western carmakers, including Tesla, BMW AG and Renault SA.