European Union (EU) member states on Friday backed additional tariffs on electric car imports from China, despite opposition from the bloc’s biggest economy, Germany, sources in EU diplomatic circles revealed. .
The ambassadors of ten EU countries, including France and Italy, voted for additional tariffs of up to 35.3%, five countries, including Germany and Hungary, voted against and 12 countries abstained.
In June, the European Commission imposed additional temporary import duties on Chinese electric car imports after an investigation concluded that Beijing’s support for the auto industry creates unfair competition.
China has criticized the new tariffs, set at up to 35.3% on imports, as a protectionist measure that could lead to a trade war. First, in June, the EC proposed additional import duties of up to 38%.
The current import tax is 10%.
Brussels justifies the extra tariffs as protecting European carmakers, which provide 14 million jobs but do not benefit from the state subsidies China pays to the companies they have
The additional EU tariffs are expected to be valid for five years from 31 October.
A no vote of at least 15 countries, representing 65% of the bloc’s population, is needed to stop the introduction of tariffs.
Of the two largest countries in the bloc, France supports the tariffs to improve the ability of local manufacturers to compete with electric cars made in China, but Germany, which has a strong car industry, against the additional taxes, saying that its manufacturers such as BMW, Volkswagen and Mercedes have invested a lot in China and the EU is threatening relations with Beijing with tariffs.
Hungary, for example, is also facing tariffs as China has threatened retaliatory measures and launched investigations into European brandy, dairy products and pork.
German Finance Minister Christian Lindner, major carmakers and other stakeholders urged the bloc to be careful to avoid a trade war with China after it backed additional EU duties.
Trade tensions between China and the EU are not limited to electric cars, the investigations launched by Brussels also cover Chinese subsidies for solar panels and wind turbines.
The bloc faces a tough task as it tries to boost its clean technology sector and invest in the green movement without provoking a bitter trade war with China.
