EU’s backing enables imposition of Chinese EV tariffs

People stand near NIO ET5 car model at the NIO House, the showroom of the Chinese premium smart electric vehicle manufacture NIO Inc. in Berlin, Germany, August 17, 2023. [Annegret Hilse/Reuters]

Greece, France, Italy, and Poland are set to vote for tariffs of up to 45% on Chinese electric vehicle imports, potentially escalating trade tensions with Beijing. If passed, the European Commission’s proposal will impose tariffs for the next five years on EVs made in China.

The EU Commission aims to protect EU industry from subsidized Chinese imports. The supportive countries account for 39% of the EU population. Interestingly, Germany, a key player in the auto industry, has abstained from voting in the past due to internal disagreements.

In light of the ongoing negotiations, the EU is considering alternatives such as minimum import prices based on vehicle criteria or investments in the EU with quotas. The proposed tariffs range from 7.8% for Tesla to 35.3% for non-cooperative companies, in addition to the standard 10% import duty.

With differing opinions and economic considerations at play, the final decision on Chinese EV tariffs remains a topic of debate among EU member states.