EU to move ahead with tariffs on Chinese-made electric vehicles despite German opposition

The European Union will impose tariffs of up to 45% on electric vehicles made in China next month, despite objections from Germany, its largest economy. The move, backed by 10 EU members, comes after a year-long investigation into what the EU considers unfair Chinese subsidies. These tariffs are expected to cost automakers billions over five years.

Although negotiations with Beijing continue, the decision reveals divisions between EU countries. Some, like France and Italy, support the tariffs, citing concerns about Chinese dominance in the market. Germany, however, fears that these customs duties could trigger retaliatory measures and harm its automobile sector.

China’s Commerce Ministry condemned the tariffs as “unfair” and hinted at possible retaliatory measures. European carmakers like Renault and Volkswagen have posted gains on the stock market, although concerns remain that tariffs could incentivize Chinese companies to build production facilities within the EU, further complicating the trade conflict.

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