(Bloomberg) — The European Union plans to hold a vote on Sept. 25 on imposing final tariffs on electric vehicles imported from China, according to insiders.
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The vote would clear the way for the tasks to take effect from November unless a qualified majority — 15 member states representing 65% of the EU population — opposes the move. The date of the vote could still change, said the people, who spoke on condition of anonymity.
The EU has proposed hitting SAIC Motor Corp., Volvo Car AB parent Geely and BYD Co. with duties of 36.3%, 19.3% and 17% respectively, on top of the 10% tariff that exporters from China already pay. Bloomberg previously reported that those tariffs are expected to be adjusted slightly downward. Tesla Inc. would face an additional tariff of just under 8%, plus the basic duty.
European Commission President Ursula von der Leyen launched the EV investigation last year, saying Chinese companies were unfairly benefiting from state subsidies and flooding Europe with excess production. In response, Beijing launched anti-dumping investigations into EU exports of brandy, dairy and pork products.
China and the EU have held talks to explore alternatives to the tariffs, but these have so far been unsuccessful. For Brussels, any solution must be based on World Trade Organization rules and address the underlying harmful subsidies that an EU investigation has identified.
The talks will continue next week when Chinese Trade Minister Wang Wentao visits Europe to meet EU trade chief Valdis Dombrovskis.
China claims the measures are protectionist and has threatened retaliatory measures in a range of sectors as it seeks a deal to resolve all disputes as a package. Beijing is also challenging the measures at the WTO. The EU sees China’s investigations as retaliation and plans to defend its interests in all three probes, the sources said.
Spanish Prime Minister Pedro Sanchez raised eyebrows earlier this week when he said the EU should reconsider its plan to impose the tariffs during a visit to China. Germany has also pressed Brussels to find an alternative to the levies as the auto industry has expressed concerns about the measures.
Germany and Spain both have huge financial incentives to avoid a spiral of tit-for-tat restrictions. German automakers including Volkswagen AG and BMW AG would be hit hardest by a trade war, as they sold a combined 4.6 million cars there in 2022.
Spain is the EU’s second-largest car manufacturer and is trying to attract investment from China to develop its electric car industry, which is one of the reasons for Sanchez’s trip there this week.
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