Two categories of Chinese exports will be subject to temporary special tariffs by the EU

Biodiesel

The EU plans to impose temporary special tariffs on biodiesel from China, which will be implemented from mid-August. 

German farmers' associations and European manufacturers have long complained about dumping of biodiesel imported from China. Now the EU hopes to change the situation by imposing special tariffs. Temporary special tariffs range from 12.8% to 36.4% of the value of the goods.

The announcement from Brussels is part of a series of measures against Chinese exports. The temporary tariffs on electric vehicles implemented by the EU in early July have attracted attention from the entire industry. Whether the temporary tariffs will be lifted in November this year or turned into long-term punitive tariffs - despite strong opposition from the German automotive industry - depends mainly on the results of negotiations between the EU and China in the coming months.

The EU has launched an in-depth investigation into China's biodiesel exports, which is scheduled to last until February 2025. At that time, the EU will finally determine whether the tariffs will remain.

Many European producers blame China. 90% of China's total biodiesel exports are sold to the EU.

The EU prohibits the import of palm oil-based biodiesel. They also suspect that China's biodiesel exports contain false information, such as they conceal the palm oil used in the production process.

The annual turnover of the EU biodiesel market is estimated at 31 billion euros. This fuel is considered a "green" alternative to fossil fuels. The EU wants to reduce CO2 emissions by at least 55% compared to 1990 levels by 2030, and even by 90% by 2040.

As in the case against electric vehicles, from the Chinese perspective, the EU is actually following and strengthening the direction of protectionist policies. Beijing warns that the current tariffs could significantly increase the costs of the EU's switch to "green" energy.

Sweeteners

Coincidentally. The EU will also impose provisional anti-dumping duties on the non-caloric sweetener erythritol from China. According to the EU Official Journal, imports from China's largest manufacturer Sanyuan will now have to pay an additional tariff of 156.7%. For other Chinese manufacturers, the tariff rates range from 31.9% to 235.6%.

The EU believes that the price of erythritol is distorted by Chinese government intervention rather than arising through the free play of market forces. This temporary tariff will apply for six months.

Erythritol is mainly used as a sugar substitute in food and beverages. It can be used either pure or combined with other ingredients such as stevia. In the EU, it is used in beverages, confectionery, baked goods and sports nutrition. It is not clear whether the new tariffs will affect the price of sweeteners in the EU.

The regulation does not predict whether the additional costs will be passed on to consumers. The EU often responds to competition from Chinese manufacturers' high-quality and low-priced goods by raising tariffs.