FOREX: FX OPTION EXPIRY

(MNI) London - Joanna Sopinska at MLex posts on X: "Chinese EVs to face hefty definitive EU countervailing duties of up to 36.3 percent under the proposal disclosed today [...]. If EU governments don't oppose the measures, they will enter into force by Oct. 30 and stay in place for 5 years. All China-made EVs, including EU and US brands, will be affected, with Tesla facing the lowest import duty of 9 percent. The definitive countervailing duties won't be imposed retroactively and the provisional measures won't be collected, the proposal says."

• The imposition of provisional tariffs in July has already dented in EV sales to Europe. Data from Rho Motion showed sales in the EU down 7.8% in July. This compares to a 31% increase in China, and 7.1% growth the the US and Canada.
• China has lodged a complaint with the WTO regarding the provisional tariffs, arguing that "the EU's preliminary ruling lacks a factual and legal basis, seriously violates WTO rules,".
• In order to counter the tariffs, some Chinese firms have moved to boost production in countries with tariff-free access to the EU, such as Morocco and Turkey, as well as constructing new factories within the EU.
• As EU Observer reports, "some EU governments themselves are unconvinced by the need for tariffs. In an advisory vote on the tariffs in mid-July, 12 EU countries backed the tariffs, four voted against and 11 abstained. Further discussions and a formal vote are set to be held in October. "