Brussels. The European Union will continue with the imposition of strong tariffs on electric vehicles manufactured in China, the Community Executive announced this Friday, even after Germany, the bloc’s largest economy, rejected them, revealing a gap in its biggest conflict. trade with Beijing in a decade.
Proposed tariffs on electric vehicles made in China, of up to 45 percent, would cost automakers billions of additional dollars to bring the cars to the bloc and will be imposed starting next month for five years.
The Commission, which oversees the bloc’s trade policy, has said it will counter what it sees as unfair Chinese subsidies following a year-long anti-subsidy probe, but also said Friday it would continue talks with Beijing.
A possible compromise could be to set minimum sales prices.
In Friday’s vote, 10 EU members supported the tariffs, five voted against and 12 abstained, according to community sources.
Opposition by a qualified majority of 15 EU members, representing 65 percent of the EU population, would have been needed to block the proposal. Reuters reported Wednesday that the measure was likely to pass with the support of France, Italy and Poland.
The region’s largest economy and main automobile producer, Germany, voted against the proposal, according to sources consulted this Friday.
The Community Executive assured that it had obtained “the necessary support” to approve the tariffs, although it will continue talks with Beijing to find an alternative solution.
This Friday’s vote reflected divisions over the EU’s trade relations with China. Some countries want a firm line against what they see as excessive state subsidies, recalling that the EU did not impose tariffs on Chinese solar panels a decade ago. China has a share of more than 90 percent of the EU photovoltaic market.
Other countries want to encourage Chinese investment or fear a trade war.
Shares of European carmakers Renault and Volkswagen rose on hopes that tariffs will help them compete with Chinese rivals on their home turf, when global demand is falling.
In what was already seen as retaliation, Beijing this year launched its own investigations into imports of brandy, dairy products and pork from the EU. European cognac and pork producers are worried.
The Chinese Ministry of Commerce expressed its firm opposition to the EU’s planned tariffs, calling them “unfair, non-compliant and irrational”, which violate World Trade Organization rules, although it did not mention any countermeasures. BMW has already filed an appeal before the WTO.
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– 2024-10-07 17:11:44
