(Yicai) June 13 -- SAIC Motor and Nio said they oppose the European Union’s additional tariffs of as much as 38 percent on electric vehicles imported from China, which are due to kick in on July 4.

SAIC, which makes the Roewe and Maxus brands, said it was deeply disappointed by yesterday’s announcement from the European Commission, the EU’s executive arm. 

Following an initial investigation, the Brussels-based commission said it will impose provisional countervailing duties ranging from 17.4 percent to 38.1 percent on China-made EVs to offset local subsidies. On top of the standard 10 percent tariff, an 17.4 percent will be levied on EVs made by BYD, 20 percent on Geely Auto’s, and 38.1 percent on SAIC’s.

SAIC said the measures violate the principles of the market economy and international trade rules, and may even affect the stability of the global auto industry chain, as well as economic and trade cooperation between China and the EU.

Shanghai-based SAIC said that the commission should carefully consider its decision and engage in a constructive dialogue with global automotive partners, including China, to jointly find solutions for fairer competition and more sustainable development.

Nio told Yicai that it strongly opposes tariff hikes that block normal trade because they hinder rather than promote global environmental protection, lower emissions, and sustainable development.

The EV startup, which is also headquartered in Shanghai, said it does not plan to give up on global markets in the face of protectionism. In Europe, it will continue to serve customers well and make efforts to explore more markets.

Nio remains hopeful that the issues will be properly resolved before the final conclusions of the EU’s investigation are made public, it added.

Mercedes-Benz told Yicai that it has always supported free trade based on the rules of the World Trade Organization, including the principle that all market participants should enjoy equal treatment. Free trade and fair competition bring prosperity, growth, and innovation, so if protectionism grows, there will be negative consequences for all stakeholders, it added.

The German carmaker said it will closely monitor developments.

Shares of SAIC [SHA: 600104] declined 1.6 percent to close at CNY13.97 (USD1.93) each in Shanghai today.

Nio [HKG: 9866] gained 1.3 percent to HKD34.80 (USD4.46) in Hong Kong. In pre-market trading in New York, its stock was 1.1 percent up at USD4.50 as of 8.08 a.m. local time, after edging down 0.2 percent yesterday.

Editor: Emmi Laine