The vote paves the way for the imposition of tariffs of up to 35.3% on Chinese electric vehicles. Germany opposes the measure fearing a trade war with China, Beijing criticizes European “protectionism” and threatens retaliation The European Union (EU) has led the way in imposing tariffs of up to 35.3% on imported electric vehicles from China, a measure A. this could potentially result in a prolonged trade war with the Asian giant.
The vote among the bloc’s 27 member states follows a year-long anti-subsidy review by the European Commission, which proposed tariffs to combat what it sees as unfair Chinese subsidies.
Countries such as France, Italy, Greece and Poland have signaled they would support the tariffs. However, Germany, along with Hungary, Malta, Slovakia and Slovenia, voted against the proposal, according to German public broadcaster Deutschlandfunk.
The European Commission will now decide whether the import taxes will come into force at the beginning of November. The European bloc’s executive said it will continue negotiations “to explore an alternative solution that should be fully compatible with the World Trade Organization (WTO), suitable to address harmful subsidies established by the Commission’s investigation, verifiable and enforceable “.
Germany and Spain are against it
Germany, the bloc’s largest economy and a major car maker, has expressed strong objections to imposing tariffs, fearing losses for its automakers, which rely heavily on the Chinese market.
Volkswagen has criticized the tariffs, saying this would be “the wrong approach”.
The German Automotive Industry Association (VDA) called the vote “another step towards global cooperation.” The organisation’s president, Hildegard Müller, called on both sides to avoid escalation and “ideally to stop tariffs, to avoid the risk of a trade war”.
The approved tariffs range from 7.8% for foreign companies such as Tesla, which produces vehicles in China, up to 35.3% for Chinese companies that allegedly did not cooperate with the European Commission’s review. The tariffs are on top of the EU’s standard 10% import tax on cars.
The Reuters news agency has found that Spain’s Economy Minister, Carlos Cuerpo, has written to European Commission Vice President Valdis Dombrovskis, asking that negotiations be kept open after the vote, rather than simply imposing the new tariffs.
“Protect European car manufacturers”
The European Commission, which oversees the bloc’s trade policy, says the tariffs are necessary to protect European carmakers from unfair competition, as Chinese competitors benefit from large state subsidies.
The US and Canada have announced 100% tariffs on Chinese electric vehicles, making the EU a lucrative market for these cars.
Beijing has opposed the tariffs, accusing them of being “protectionist” and threatening retaliatory measures. China has already started analyzing European imports of cognac, dairy products and pork products, signaling reactive measures.
The European Commission has demonstrated its willingness to continue negotiations with China and said it will consider setting a minimum import price for electric vehicles.
RC (AFP, Reuters)
Source: Terra
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