Germany is expected to abstain from Monday’s EU member states vote on imposing provisional tariffs on China-made electric vehicles, showing support for Brussels’ trade case. The proposed tariffs on EVs imported from China could reach up to 37.6%, with the final decision dependent on the EU member states’ support.
By abstaining, Germany backs the EU Commission as it negotiates with Beijing on the trade issue, citing ongoing anti-subsidy investigations and negotiations as reasons for their decision. German carmakers, heavily reliant on sales in China, fear retaliatory actions and a potential trade conflict with their second-largest trading partner.
While France supports the tariffs, Hungary has criticized them, and other member states remain uncertain. This marks the first official test of support for the commission’s tariff initiative, which aims to create a level playing field against Chinese subsidies.
Chancellor Olaf Scholz expressed optimism about reaching an agreement with China, emphasizing the importance of fair competition. The final decision on tariffs will require a qualified majority vote among EU members, with implications for the future of EU-China trade relations.