The EU’s 27 member states are expected to vote on Friday (October 4) on a proposal from the European Commission – the EU’s executive branch – for new additional tariffs on Chinese battery electric vehicles (BEVs).
Reuters reported that under EU rules, the European Commission can impose the tariffs for the next five years unless a qualified majority of 15 EU countries, representing 65% of the EU population, vote against the plan.
Italy, France, Poland and Greece will vote in favor of the new tariffs, according to the news agency – and they represent almost 40% of the EU population.
A European Commission investigation has concluded that Chinese-made BEVs have benefited from unfair subsidies that make them cheaper than European-made competition.
The new China-specific tariffs on BEVs would be on top of the existing 10% tariff that applies to all cars imported into the EU from countries that do not benefit from separate trade agreements.
Germany is reportedly concerned about rising trade tensions between the EU and China, especially in the car trade. German OEMs have halted major investments in joint venture manufacturing in China.
“I am not a fan of countervailing duties as this will likely lead to countermeasures and involve us in a tariff dispute, perhaps a tariff war, with China,” German Economy Minister Robert Habeck said earlier this week, according to Reuters. “I am working to find a political solution that will not push us into a tariff war with China.”
Some reports suggest that negotiations between Brussels and Beijing could continue after Friday’s vote.
A number of Chinese companies are also looking to set up production facilities within the EU to avoid tariffs.
“EU Tariff Proposal for Chinese BEVs Likely to Be Carried” was originally prepared and published by Just Cara brand owned by GlobalData.
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