The European Union has imposed tough tariffs on Chinese manufacturers of electric vehicles (EV), namely 17%, 18.8%, and 35.3% on EV units from BYD, Geely, and SAIC respectively, the latter of which is state-owned.
In comparison, the brands’ US competitor, Elon Musk’s Tesla, has a tariff of 7.8% on all EVs imported by the bloc.
Not all were for it, though, Bloomberg reports.
“Spurred on by its carmakers, Germany pushed hard for a softer approach and voted against the levies along with four other member states, including Hungary.
“Ten nations, including Italy, France and Poland, stuck their necks out and voted in favour of the tariffs. Twelve others, including Spain, abstained.”
According to the news service, the EU and China are exploring whether an agreement can be reached on a complicated mechanism to control prices and volumes of exports in place of the duties.
“Any solution ‘would have to be fully WTO-compatible, adequate in addressing the injurious subsidization established by the commission’s investigation, monitorable and enforceable,’ the bloc’s executive arm said after the vote, referring to World Trade Organization rules.”
Currently, EVs from China have a 10% tariff placed on units imported into the EU.
Unless an agreement is reached with Beijing, Brussels will enforce the new tariffs in November.
In the same month, American voters go to the polls to elect their next president, and one of the candidates, Donald Trump, has pledged to resume the imposition of heavy tariffs against China, a trade mark of the last time he was ensconced in the White House.
The EU’s EV tariff announcement is likely to pave the way for more robust trade relations between Brussels and Beijing, Bloomberg reports.
“Though its efforts to divide member states fell short, China has already threatened to retaliate by targeting imports of pork, dairy, brandy, and cars with large engines. The EU has made clear it will defend its interests against any such moves.
“Now the focus has turned to how and when Beijing will retaliate for the escalation in its biggest trade dispute with the bloc in years.”
