European Commission’s Tariff Plans on Chinese Electric Vehicles

The European Commission has announced it will impose tariffs of up to 45% on electric vehicle imports from China, backed by enough support among member states.

Despite significant opposition, notably from Germany, the Commission intends to move forward with this plan. A recent vote revealed that 10 EU countries supported the tariffs, while five, including Germany, opposed them, and 12 abstained. The tariffs will come into effect for five years starting in November and could impose billions in extra costs on car manufacturers exporting to the EU.

The Commission argues these tariffs are necessary to address perceived unfair trade practices by China that threaten the electric vehicle market in Europe. However, it intends to continue discussions with Beijing, considering possible compromises such as setting minimum sales prices for vehicles.

The China Chamber of Commerce to the EU expressed “deep disappointment” about the vote, urging the EU to reconsider and encourage dialogue instead of adopting protectionist measures. German automakers, including Volkswagen, BMW, and Mercedes-Benz, criticized the decision and called for negotiations with China, while France’s PFA stated its support for fair free trade.

(Reuters contributed reporting.)