Saturday, October 5, 2024

EU Will Slap Higher Tariffs On Chinese EVs

Chinese EVs
Chinese-made electric vehicles or EV will face more hurdles in the market after the European Union member states are expected to confirm the imposition of punitive tariffs in a vote on 4 October.

Despite the persistent efforts by the governments of China and Germany to stop the tariffs, they are expected to fall short, meaning duties of up to 35 per cent will be slapped on imports of the cars from 5 October.

Blocking the tariffs requires 15 member states, accounting for 65 per cent of the bloc's total population, to vote against them during the confidential procedure.

Germany's ambassador to the EU Michael Clauss said that the bloc's most powerful member has yet to make up its mind how to vote, but he expects most capitals to abstain, meaning the "tariffs, in all likelihood, will be confirmed".

An abstention will not count as a vote against in the EU's Byzantine procedures. It also offers individual member states some cover from Chinese retaliation, showing that "you don't want to go against the proposal, but it sends a signal that you aren't the ones pushing for it", Clauss told a three-day event in Brussels hosted by Politico.

Populous members such as France, Italy and Poland are expected to vote in favour of the duties, almost guaranteeing their passage.

Nonetheless, Beijing has embarked on a vocal campaign to sway EU members and it has launched a series of retaliatory trade probes. It also dangled investment carrots in front of governments such as Spain, which has moved from backing the tariffs to hinting at opposing them.

The scale of Germany's secret mission to undermine the commission's findings, however, is only beginning to become clear.

Leading up to the vote, the office of Chancellor Olaf Scholz has been calling other European leaders, fearing the country's powerful car industry - already facing duties on electric cars made in China - will be in line for reprisals from Beijing.

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