The European Commission has said it has received enough support from its member states to push ahead with the imposition of tariffs of up to 45% on electric vehicles made in China.
The European Union’s executive has decided to stick with its planned import tariffs despite deep disagreements with the bloc’s members, including opposition to the proposal by leading economy and key auto hub Germany.
According to multiple media sources, a crucial vote by EU members on Friday showed 10 supported the tariffs, 5 – including Germany – opposed them and 12 abstained. The tariffs would only have been blocked if 15 EU members, representing around 65% of the bloc’s population, voted against them.
The levies, set to take effect for five years from November, could cost automakers billions of euros in extra costs when bringing their vehicles into the EU.
Brussels argues the higher tariffs are necessary to combat what it sees as China’s unfair trade practices, which could pose a “threat” to electric vehicle companies in Europe.
The Commission, however, said it would continue to negotiate with Beijing. Reuters reported that a possible compromise could be setting minimum selling prices.
In a statement on social media platform X on Friday, the China Chamber of Commerce to the EU said it was “deeply disappointed” by the vote and “very dissatisfied” with the bloc’s “imposition of protectionist trade measures”.
“We strongly encourage the EU to approach the final measures with caution, delay the implementation of these tariffs and give priority to resolving disputes and trade tensions through consultations and dialogue,” the CCCEU added.
Auto companies in Germany, including Volkswagen (ETR:VOWG_p), BMW (ETR:BMWG) and Mercedes-Benz (OTC:MBGAF), strongly criticized the EU Commission’s decision and called on Brussels to negotiate an agreement with China, according to media reports. Meanwhile, the French automobile association PFA said it was in favor of free trade as long as it was fair, Reuters reported.
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Reference;
Kanowsky, S. (2024) EU Commission to move ahead with tariffs on Chinese-made EVs By Investing.com, Investing.com. Investing.com. Available at: https://www.investing.com/news/stock-market-news/eu-commission-to-move-ahead-with-tariffs-on-chinesemade-evs-3649169 (Accessed: 4 October 2024).
