The European Commission said on Friday it had received enough support from European Union (EU) members to impose tariffs of up to 45 per cent on Chinese electric vehicle (EV) imports in the bloc’s highest profile trade case, but would continue to negotiate with Beijing.
The Commission, which oversees the bloc’s trade policy, has proposed final duties on Asian-built EVs for the next five years to counter what it sees as unfair Chinese subsidies after a year-long anti-subsidy investigation.
In a vote on Friday, ten EU members backed tariffs and five voted against, with 12 abstentions, EU sources said.
It would have taken opposition from a qualified majority of 15 members, representing 65 per cent of the EU population, to block the proposal.
Reuters reported on Wednesday that the measure was likely to pass with France, Italy and Poland planning to vote in favour.
The EU executive said it had obtained “the necessary support” to adopt the tariffs, although it would continue talks with Beijing to find an alternative solution.
The region’s biggest economy and major car producer, Germany, voted against the proposal, sources said on Friday.
BMW Chief Executive Oliver Zipse described the vote as “a fatal signal for the European automotive industry”.
He said a quick settlement was needed between Brussels and Beijing to prevent a trade conflict.
Volkswagen said the planned tariffs were “the wrong approach.”
China’s foreign ministry did not immediately respond to a Reuters request for comment.
Stellantis said it supported free and fair competition and that the sector was under pressure from ambitious carbon reduction plans and “the Chinese global commercial offensive”.
Hungarian Prime Minister Viktor Orban said on Friday that the EU was headed for an “economic cold war” with China.
The EU’s stance towards Beijing has hardened in the last five years. It views China as a potential partner in some issues, but also as a competitor and a systemic rival.
