The European Commission decision on Chinese electric vehicle tariffs is anticipated soon

Mercedes-Benz Group AG (OTCPK:MBGAF) CEO Ola Kaellenius said the automaker expects to hear a decision from the European Union on import tariffs on Chinese electric vehicles soon. Kaellenius stated that at an industry conference on Thursday that a decision on the issue is imminent.

The issue has weighed on the European and Chinese automobile sectors ever since the European Commission launched an investigation in October into whether electric cars manufactured in China were receiving distortive subsidies and warranted extra tariffs.

Earlier in the year, European Commission investigators visited BYD Company Limited (OTCPK:BYDDF), Geely Automobile (OTCPK:GELYF) (OTCPK:GELYY), and state-owned SAIC. The visits were for verification work to check on responses issued by the automakers to questionnaires. The probe was centered on the issue of whether Chinese-made electric vehicles have a material benefit from state subsidies.

Shares of Mercedes-Benz (OTCPK:MBGAF), BMW (OTCPK:BMWYY), Tesla (TSLA), and Volkswagen Group (OTCPK:VLKAF) have reacted in the past to developments on the Europe-China tariff front. Meanwhile, China’s threat to raise tariffs on gasoline cars with engines larger than 2.5L to 25% from 15% has implications for General Motors (GM), Ford Motor (F), and Stellantis (STLA).