European Union approves tariffs on Chinese electric vehicles

The European Union approved substantial measures on Friday prices on electric vehicles imported from China, despite strong resistance led by Germany and concerns about triggering a trade war with Beijing. The EU now has the power to impose tariffs for a period of five years from the end of October, on top of the existing 10% duties.
According to several European diplomats, ten member states, including France, Italy and Poland, supported the imposition of customs duties while five countries, including Germany and Hungary, voted against the measure, while twelve others, such as Spain and Sweden, abstained. vote.
France supports these tariffs, arguing that they are necessary to create a level playing field for European automakers compared to their Chinese competitors. However, Germany, known for its strong auto industry and major manufacturers such as BMW, Volkswagen and Mercedes, which have invested heavily in China, believes the EU risks harming itself with tariffs and has called for continuation of negotiations with Beijing.
Spain, initially supportive of the tariffs, has also changed its position, with Prime Minister Pedro Sanchez asking Brussels to reconsider its position. Hungary has also expressed opposition to the tariffs, with Prime Minister Viktor Orban describing them as “the next stage of the economic Cold War.”
These additional duties will also be imposed on electric vehicles made in China by foreign companies like Tesla, which face tariffs of 7.8%.
The EU’s main objective behind the move is to safeguard its auto industry, which employs around 14 million people across the bloc but does not benefit from the substantial state subsidies provided in China. In comparison, Canada and the United States recently imposed significantly higher tariffs of 100% on Chinese imports of electric cars.
The group previously provisionally approved the measure in June following an investigation that found Chinese state aid to automakers unfair.
While the decision is now in the hands of the European Commission, an EU diplomat said the Commission “can be expected to make a decision in line with its proposal.”
At the same time, China criticized the new tariffs as “protectionist” and warned they would lead to a trade war. Beijing has already launched investigations into European brandy, dairy and pork products imported into the country.
Despite China’s efforts to resolve the issue through dialogue, negotiations have yet to result in an agreement satisfactory to the EU.
The Commission said the duties could be removed if China addressed the EU’s concerns.
Additionally, trade tensions between China and the EU extend beyond electric cars, with Brussels also launching investigations into Chinese subsidies for solar panels and wind turbines. The bloc faces a difficult task as it tries to nurture its clean technology industry and invest in the green transition without triggering a costly trade war with China.