EU states give green light to additional tariffs on electric vehicles from China

“DEAD SIGNAL”

The EU taxes have pitted France and Germany against each other, with Paris saying they are necessary to level the playing field between European automakers and their Chinese counterparts.

Germany, known for its strong auto industry and major manufacturers including BMW, Volkswagen and Mercedes, have invested heavily in China, urged the commission not to move forward.

The vote results demonstrate how the EU’s biggest trade probe in years has ruffled feathers, with the bloc’s biggest economy vehemently opposing the tariffs.

“The European Commission should not trigger a trade war despite voting in favor” of customs duties, said German Finance Minister Christian Lindner. “We need a negotiated solution.”

Berlin has strong arguments in its favor: Beijing has threatened to retaliate harshly and has already opened investigations into European brandy, dairy and pork products imported into China.

“We will face all kinds of retaliation from China, that’s for sure,” one diplomat said.

China has tried in vain to prevent these rights from coming into force through dialogue, but negotiations have so far failed to produce an agreement satisfactory to the EU.

All duties could be lifted later if China addresses EU concerns.