EU Member Nations to Vote on Increasing Tariffs on Chinese EVs

The European Union (EU) and China have agreed to continue discussions regarding the EU's proposal to impose additional tariffs of up to 36.3% on imported Chinese electric vehicles (EVs). This decision comes amid deteriorating relations between the two entities. EU member states are expected to cast their votes on the proposed measures soon, with reports indicating that the vote is scheduled for October 4, although this date may change.

The slight delay in the voting process is attributed to last-minute negotiations with Beijing aimed at finding a resolution that would avoid the new tariffs. Currently, the EU imposes a standard 10% duty on car imports. In June, the European Commission, which acts as the EU's primary executive arm, announced further provisional tariffs on Chinese EVs. This move followed an EU investigation into alleged unfair state subsidies provided to China’s car manufacturing sector, which were seen as a threat to European competitors. The proposed tariffs are also intended to address issues related to Chinese industrial overcapacity within the EU market.

Specific tariffs have been proposed for leading Chinese EV manufacturers, with 17% for BYD, 36.3% for SAIC Motors, and 19.3% for Geely. The EU's stance on the tariffs varies based on the level of state subsidies received by each firm.

Trade officials from both the EU and China have committed to intensifying efforts to resolve these trade disputes. Meanwhile, stakeholders in affected sectors are hoping that officials will carefully consider the implications of a prolonged confrontation between the two powers. The proposed tariffs are expected to be implemented by the end of October unless a qualified majority of 15 EU member states, representing 65% of the EU population, votes against the imposition of these levies.