The European Commission has secured enough backing from EU member states to impose tariffs of up to 45% on imports of electric vehicles (EVs) from China, the EU’s executive body announced on Friday, amid growing concerns over a potential EU-China trade war.
The Commission confirmed that its proposal for definitive tariffs on Chinese battery electric vehicles (BEVs) “has obtained the necessary support from EU Member States for the adoption of tariffs.”
However, the EU and China are still working to find an alternative, WTO-compliant solution that addresses the subsidization issues identified by the Commission’s investigation. Any agreement would need to be enforceable and closely monitored, according to the Commission.
Sources indicate that several EU countries abstained during the vote, with Germany and Spain voicing opposition. Both nations fear a full-scale trade war with China, which could lead to retaliatory tariffs on EU exports such as cars, pork, dairy, and brandy.
The current provisional duties, which took effect on July 5, are temporary and last for a maximum of four months. In response, China has launched anti-dumping investigations targeting EU imports, particularly brandy and pork, likely aimed at countries such as Spain, France, the Netherlands, and Denmark. German carmakers, heavily reliant on the Chinese market, have also expressed concern over the proposed EV tariffs.
Germany’s automakers’ association, VDA, warned that the tariffs would not only affect Chinese manufacturers but also European companies and their joint ventures. Following the vote, BMW CEO Oliver Zipse stated, “Today’s vote is a fatal signal for the European automotive industry.
A swift resolution between the EU Commission and China is needed to prevent a trade conflict that would benefit no one.”
