EU countries divided over tariffs on Chinese electric vehicles; Commission considers compromise for BMW, Volkswagen models: report – Volkswagen (OTC:VWAGY)

European Union governments have expressed differing views on imposing tariffs on imports of Chinese-made electric vehicles (EVs), a non-binding but influential vote shows.

The European Commission, responsible for EU trade policy, has imposed provisional tariffs of up to 37.6% on electric vehicles imported from China and sought the opinion of EU member states in an advisory vote.

Twelve EU members approved the tariffs, four opposed them and 11 abstained in the vote, Reuters reported, citing people familiar with the discussions.

Also read: Chinese electric vehicles thrive despite price hikes, while foreign rivals struggle to grow

The Commission is likely to take these votes into account when determining whether to impose definitive duties in what is the EU’s most significant trade case to date.

France, Italy and Spain supported the tariffs, while Germany, Finland and Sweden abstained.

A German source told Reuters their abstention was in a spirit of “critical solidarity” with the Commission.

An official at the Finnish embassy expressed doubts about the measure’s compliance with EU interests, noting that not all European carmakers supported it.

Swedish Trade Minister Johan Forssell stressed the importance of dialogue between the Commission and China to resolve the issue.

Beijing has warned that it will take significant retaliatory measures.

The Commission plans to extend its investigation by three months before deciding whether to propose definitive duties, which usually last five years, Reuters added.

Any tariff proposal would require a binding vote among EU members and could be blocked if 15 member countries representing 65% of the EU’s population vote against it.

As a compromise, the European Commission has indicated that it is potentially considering a reduction in customs duties on BMW‘s BMWYY Mini electric made in China and Volkswagen AG VLKAF VWAGIE Cupra Tavascan.

Disclaimer:This content was partially produced using AI tools and was reviewed and published by Benzinga editors.

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