EU Should Seek Compromise with China on EV Tariffs

By Belén Carreño

MADRID (Reuters) – Spain urged the European Union to pursue a compromise with China before a crucial vote on electric vehicle (EV) tariffs.

Instead of imposing tariffs, Economy Minister Carlos Cuerpo suggested keeping negotiations open beyond the binding vote to discuss pricing and the relocation of battery production to the EU.

Cuerpo expressed concerns for Spain’s domestic industry, noting it’s the EU’s second-largest car producer. He emphasized balancing industrial interests while avoiding severe confrontations with major players like China.

Prime Minister Pedro Sanchez previously advocated for reevaluating the EU’s stance on tariffs and preventing a trade war with China during his visit there.

The EU Commission’s proposal will proceed unless 15 member states, representing 65% of the population, vote against it, a challenging criterion. Reports indicate that France, Greece, Italy, and Poland support the proposal, which could facilitate the EU’s significant trade measures, while Germany intends to vote against.

Carmakers like Volkswagen and Renault are currently producing EVs in Spain, and China’s Chery Auto has partnered with Spain’s EV Motors to establish its first factory in Europe.