Key Points
- The EU will vote on October 4 on tariffs of up to 45% on Chinese-made electric vehicles.
- The European Commission proposes final duties of up to 35.3% in addition to the existing 10% import duty.
- The vote date could still change due to last-minute negotiations with Beijing.
- To block the tariffs, at least 15 EU member states, representing 65% of the population, must vote against them.
The European Union is preparing for a critical vote on October 4 regarding imposing tariffs as high as 45% on imported electric vehicles (EVs) made in China. Bloomberg News reported this potential move as the bloc aims to address concerns about the competitive advantage that Chinese automakers are perceived to have in the European market, largely due to government subsidies.
Member states have already received a draft of the proposed regulations, which outline the possibility of introducing steep tariffs on Chinese-made EVs. However, the report indicates that the voting date could still be subject to change, as last-minute negotiations between the EU and Beijing are ongoing to avoid the new levies. The European Commission is at a sensitive juncture in these talks as it looks to balance trade relations with China while protecting its domestic electric vehicle industry.
The Commission is reportedly considering final tariffs of up to 35.3%, which would be imposed on top of the EU’s existing 10% duty on car imports. The proposal comes amid increasing concern from European automakers, who claim that Chinese-made EVs benefit from state support and flood the market at prices that European manufacturers struggle to compete with. It has sparked fears that Europe’s efforts to transition to electric vehicles could be undermined by unfair competition, potentially harming local industry and jobs.
The proposed measures will be voted on by the EU’s 27 member states, with the outcome determined by a qualified majority. To block the proposal, at least 15 member countries, representing 65% of the EU population, must vote against the tariffs. If the tariffs are approved, they are expected to be implemented by the end of October.
The potential move has already caused tension between the EU and China, one of the world’s largest producers of electric vehicles. While the EU seeks to protect its market, China has expressed concern that such measures could escalate into a broader trade conflict, impacting other sectors beyond the automotive industry. Both sides are reportedly still negotiating to find a resolution to avoid the need for tariffs altogether.
