EU Nations Divided Over Tariffs On Chinese EVs; Commission Considers Compromise For BMW And Volkswagen Models: Report

European Union governments have expressed differing opinions on the imposition of EU tariffs on imports of electric vehicles (EVs) manufactured in China, as indicated in a non-binding but influential vote.

The European Commission, responsible for the EU’s trade policy, has imposed provisional tariffs of up to 37.6% on electric vehicles imported from China and has sought input from EU member states in a consultative vote.

Twelve EU members endorsed the tariffs, four opposed them, and eleven abstained from voting, Reuters reported, citing people familiar with the discussions.

Also Read: Chinese EV Thrive Despite Tariff Hikes, Foreign Rivals Struggle

The Commission is likely to consider these votes when determining whether to proceed with definitive duties in what is the EU’s most prominent trade case to date.

France, Italy, and Spain supported the tariffs, whereas Germany, Finland, and Sweden abstained.

A German source told Reuters that their abstention was in the spirit of “critical solidarity” with the Commission.

An official from the Finnish embassy expressed doubts about the measure aligning with EU interests, noting not all European car manufacturers supported it.

Swedish trade minister Johan Forssell emphasized the importance of dialogue between the Commission and China to resolve the issue.

Beijing has warned of extensive retaliatory measures.

The Commission plans to extend its investigation for three months before deciding on proposing definitive duties, typically lasting five years, Reuters added.

Any proposed tariffs would require a binding vote among EU members, and could be blocked if 15 member countries representing 65% of the EU population vote against.

As a gesture of compromise, the European Commission has indicated potential consideration for a reduced tariff on BMW‘s BMWYY China-made electric Mini and Volkswagen AG’s VLKAF VWAGY Cupra Tavascan.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Shuttershock

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