EU states plan to vote on Chinese EV tariffs on Friday

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EU member states are expected to vote on Friday on whether to impose heavy tariffs on imported electric cars from China, European diplomats said on Monday.

The European Commission, which is responsible for EU trade policy, plans to impose additional duties of up to 36 percent on electric vehicles imported from China, but the issue has divided the bloc.

Brussels announced its plans for the tariffs in July – on top of the current 10 percent levies – after an anti-subsidy investigation found that Chinese state subsidies were unfairly undermining European competitors.

The tariffs would become permanent for five years after a vote by the EU’s 27 member states, due to take place before the end of October.

That vote is now scheduled for October 4, EU diplomats told AFP. One diplomat said the hope now was that talks “can continue after the tariffs are set.”

Eleventh-hour talks took place in Brussels when Chinese Trade Minister Wang Wentao visited earlier this month, but no solution was found to avoid duties.

The EU wants to create a level playing field to protect the car industry, which employs around 14 million people in the bloc.

Germany, and most recently Spain, have criticized the tariffs, which they fear could lead to a trade war with China, but EU countries including France and Italy support them.

Beijing has already bared its teeth in anger over the tariffs and has investigated European cognac, certain dairy and pork products imported into China.

The country also appealed the tariffs to the World Trade Organization last month.

It is unlikely that enough EU countries will vote against the tariffs to force the commission to change course.

At least 15 countries – representing 65 percent of the EU population – would have to oppose the tariffs to prevent them from becoming permanent.

raz/ec/lth

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