EU Commission Gets Support to Slap Up to 45% Tariffs on Chinese EVs

The European Commission has received enough support from EU member states to impose hefty tariffs of up to 45% on imports of electric vehicles from China, the EU’s executive arm said on Friday, as fears of an EU-China trade war intensify.

On Friday, the Commission’s proposal to impose definitive duties on imports of battery electric vehicles (BEVs) from China “has obtained the necessary support from EU Member States for the adoption of tariffs,” the European Commission said.

“In parallel, the EU and China continue to work hard to explore an alternative solution that would have to be fully WTO-compatible, adequate in addressing the injurious subsidization established by the Commission’s investigation, monitorable and enforceable,” the Commission added.

According to Bloomberg’s sources, a number of EU member states abstained in the vote.

Germany and Spain have recently voiced their opposition to the tariffs, fearing an all-out trade war with China with potential retaliatory Chinese tariffs on EU cars, pork, dairy, and brandy.

The current duties, in effect from July 5, are provisional and for a maximum period of four months.

The provisional tariffs led to a reaction in China, which is proceeding with anti-dumping investigations of EU imports, targeting brandy and pork imports from the bloc, likely aimed at Spain, France, the Netherlands, and Denmark.

German carmakers, which have a large market in China, have also opposed the EV import duties.

“The European anti-subsidy tariffs would not only affect Chinese manufacturers but also European companies and their joint ventures in particular,” VDA, Germany’s automakers’ association, has said.

Following today’s vote, Oliver Zipse, chief executive of German auto giant BMW, said “Today’s vote is a fatal signal for the European automotive industry. What is needed now is a quick settlement between the EU Commission and China to prevent a trade conflict from which no one gains.”