Exclusive: Spain Urges Compromise with China Before EU Vote on EV Tariffs – Reuters

By Belén Carreño

MADRID – Spain has called on the European Union to pursue a compromise and negotiate with China ahead of a significant EU vote concerning electric vehicle (EV) tariffs.

Economy Minister Carlos Cuerpo emphasized the importance of keeping negotiations active, suggesting that the EU should aim for an agreement regarding pricing and the relocation of battery production within the bloc instead of resorting to tariffs. In a letter to European Commission Vice President Valdis Dombrovskis, he highlighted the stakes for Spain’s domestic industry, noting that the country stands as the second-largest car producer in the EU.

Cuerpo stated, "We need to strike the right balance, technically and politically, to ensure that we both defend our industrial interests and avoid a large-scale confrontation with strategic players such as China."

Prime Minister Pedro Sanchez previously mentioned during a visit to China that the EU should reassess its stance on tariffs and urged both Brussels and Beijing to prevent a trade war.

The Commission’s proposal can proceed unless a qualified majority of 15 EU members representing 65% of the EU population votes against it—a challenging threshold to overcome.

Reports indicate that France, Greece, Italy, and Poland are expected to support the proposal, potentially enabling the EU’s most prominent trade measures. However, Germany has indicated plans to vote against it.

In Spain, Volkswagen and Renault are among the car manufacturers already producing electric vehicles, while China’s Chery Auto has entered into a joint venture with Spain’s EV Motors to establish its first factory in Europe.