European Union Votes to Impose Tariffs on Chinese Electric Vehicles Amid German Resistance

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ICARO Media Group
Politics
04/10/2024 16h45

**EU Paves Way for Duties on Chinese Electric Vehicles Despite German Objections**

Negotiations over the future of tariffs on electric vehicles (EVs) from China concluded with a significant decision from European Union member countries. Despite a concerted effort from German Chancellor Olaf Scholz to halt the implementation, 10 countries voted in favor of imposing the duties, while five opposed, and 12 abstained.

This mixed voting result translates into a "no opinion" stance from the committee overseeing trade defense instruments, allowing the European Commission to proceed freely with its plan. Consequently, the Commission now has the authority to impose tariffs of up to 35.3 percent on Chinese-manufactured EVs.

Officials disclosed that the Commission's nearly year-long investigation into alleged unfair state subsidies by China has paved the way for this decision. As per one EU diplomat, the legal text for enforcing these duties will likely be published by October 30, the deadline by which the Commission must conclude its probe. The tariffs would become effective immediately after.

Germany led the opposition, joined by Hungary, Slovakia, Malta, and a notable shift from Slovenia, which switched from abstention to opposition. Spain also shifted its stance from supporting the duties to abstaining, following an appeal by Prime Minister Pedro Sánchez during a visit to China.

An initial non-binding vote in July mirrored these results, though Germany’s unwavering opposition and recent diplomatic efforts signify ongoing contention over the matter. As it stands, Germany may strive for a final attempt to sway member states in overturning the tariff decision, but securing the necessary majority appears unlikely and unprecedented.

The European Commission's decision underscores its commitment to addressing what it deems as unfair competitive advantages due to Chinese state subsidies, signaling a significant shift in EU-China economic relations.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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