EU Commission to Proceed with Tariffs on Chinese-Made EVs

The European Commission has announced that it has garnered sufficient support from its member states to proceed with imposing tariffs of up to 45% on electric vehicle imports from China.

Despite some internal disagreements, particularly in light of opposition from key member Germany, the executive branch of the European Union decided to maintain its plan for these import duties. A recent vote revealed that out of the EU members, ten were in favor of the tariffs, five—including Germany—were opposed, while twelve members chose to abstain. The proposed tariffs would have been blocked only if fifteen members, representing approximately 65% of the EU’s population, had voted against them.

As a result of these levies, automotive manufacturers could face billions in additional costs to import their vehicles into the EU, with the tariffs expected to take effect for a five-year period beginning in November. The Commission argues that these higher tariffs are necessary to address what it views as unfair trade practices by China, which it believes could threaten electric vehicle manufacturers within Europe.

Despite the implementation of the tariffs, the Commission has indicated it will continue to engage in discussions with China. Reports suggest that a potential compromise could involve establishing minimum sales prices.

In response to the situation, the China Chamber of Commerce to the EU expressed its “deep disappointment” regarding the vote and voiced strong discontent with the bloc’s move towards protectionist trade measures. The chamber urged the EU to exercise caution in finalizing these measures, delay their implementation, and prioritize resolving conflicts through dialogue.

German automotive companies, including prominent manufacturers, criticized the EU Commission’s decision and encouraged the bloc to seek a negotiated resolution with China. Meanwhile, France’s automotive association expressed its support for free trade, provided it is conducted fairly.