The EU’s 27 member states are expected to vote on Friday (4 October) in favour of a European Commission – the EU’s executive – proposal for new additional import duties for Chinese battery electric vehicles (BEVs).
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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’s population votes against the plan.
Italy, France, Poland and Greece will vote in favour of the new tariffs, according to the news agency – and they represent almost 40% of the EU’s population.
A European Commission investigation has concluded that Chinese-made BEVs have benefitted from unfair subsidies that make them cheaper than European made competition.
The new China-specific tariffs for BEVs would be on top of the existing 10% tariff applying to all cars imported to the EU from countries that don’t benefit from separate trade agreements.
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By GlobalDataGermany is reportedly concerned about rising trade tensions between the EU and China, especially in automotive trade. German OEMs have sunk big investment in manufacturing in JVs in China.
“I am not a fan of countervailing duties because 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 drive us into a tariff war with China.”
Some reports suggest that negotiations between Brussels and Beijing could continue after the Friday vote.
A number of Chinese companies are also looking to set up manufacturing facilities inside the EU in order to avoid tariffs.
