EU Support Sufficient for Imposing Chinese EV Tariffs, Sources Claim

By Philip Blenkinsop

BRUSSELS (Reuters) – France, Greece, Italy, and Poland are set to vote on Friday for tariffs of up to 45% on imports of electric vehicles (EVs) manufactured in China, according to officials and sources. This move is anticipated to escalate trade tensions with Beijing and secure the European Union’s proposal.

The European Commission is currently engaged in an anti-subsidy investigation into Chinese-made EVs and has submitted its final tariff proposal to the EU’s 27 member states ahead of the anticipated vote.

Under EU regulations, the Commission holds the authority to impose definitive tariffs for a duration of five years unless a qualified majority of 15 EU countries, representing 65% of the EU’s population, votes against the initiative.

Officials indicate that France, Greece, Italy, and Poland will support the proposal, together accounting for 39% of the EU population.

Additionally, the Commission has the option to present a revised proposal if desired.

The EU’s executive body has expressed its willingness to continue discussions for an alternative to tariffs with China and may reconsider a price undertaking involving a minimum import price, which typically includes a volume cap. This comes after previously rejecting offers made by Chinese companies.

One alternative under consideration involves establishing minimum import prices based on metrics such as the vehicle’s range, battery performance, length, and whether it is two- or four-wheel drive, a source close to the negotiations stated.

Another possibility includes a commitment to investing in the EU with transitional quotas.

The proposed tariffs would vary, ranging from 7.8% for Tesla to 35.3% for SAIC and other companies identified as non-cooperative with the EU investigation. These new tariffs would be in addition to the existing 10% import duty on cars in the EU.