Chinese carmakers BYD and SAIC subsidiary MG are awaiting confirmation of new European tariffs on imports of Chinese-made electric vehicles before deciding on any price hikes in Europe to offset the impact of the surcharges, sources close to both groups told Reuters.

The European Commission decided last week to impose additional customs duties of up to 38.1% on imported Chinese electric vehicles from the beginning of July, on the grounds that the Chinese industry benefits from competition-distorting subsidies.

Barring a compromise between Europe and China in the meantime, the provisional customs duties will come into force on July 4, with the European executive aiming to make them definitive in November.

This decision, denounced by Beijing as protectionist, has raised fears of retaliation from China.

To date, only Tesla has said it expects to raise the price of its Model 3 to compensate for the higher cost at European borders, but analysts expect that other manufacturers producing in China will also be forced to pass on part of the extra cost to consumers.

Sources close to BYD and MG said there would be no decision on customer tariffs before July 4.

MG is exposed to surcharges of 38.1%, on top of the current 10% customs duty, while for BYD the new duties amount to 17.4%.

Both Chinese manufacturers were not immediately available for comment.

A spokeswoman for Dacia, Renault's low-cost brand whose electric Spring imported from China will be subject to a 21% surcharge, said earlier this week that an announcement on the car's price was "not on the agenda". (Gilles Guillaume reports, with Zoey Zhang in Shanghai, edited by Blandine Hénault)