EU’s EV Tariff Dispute with China: Compromise in Sight?
Last week, China’s commerce minister, Wang Wentao, met with EU Trade Commissioner Valdis Dombrovskis in Brussels following the EU’s announcement of import duties on Chinese electric vehicles (EVs). The EU’s anti-subsidy investigation found China’s state subsidies unfair, prompting a potential 36% tariff on some imports. Despite China’s rejection, both sides aim for a WTO-compliant solution.
Reports suggest the EU may reduce tariffs, affecting Tesla, BYD, and Geely. While disagreements persist, both parties agreed to revisit price undertakings. China has threatened retaliatory measures against the EU, especially targeting European dairy and pork. Member states like Italy and Spain have varying stances on the issue.
Germany’s abstention in a previous vote reflects concerns for its auto industry. As the EU Council vote nears, China’s strategy involves swaying member states. Experts advise caution, as China seeks to maintain access to the European market during economic difficulties. Meanwhile, the tariff dispute remains a high-stakes drama impacting global trade.
Edited by: Uwe Hessler