EU presses ahead with Chinese EV tariffs after split vote
Published: 07:10 PM,Oct 04,2024 | EDITED : 11:10 PM,Oct 04,2024
China’s BYD opens its first electric vehicle factory in Southeast Asia
BRUSSELS: Brussels will stick to plans to impose hefty tariffs on China-made electric vehicles, the EU executive said on Friday, even after the bloc's leading economy Germany rejected them and exposed a rift over its biggest trade row with Beijing in a decade. The proposed duties on Chinese-built EVs of up to 45 per cent would cost carmakers billions of extra dollars to bring cars into the bloc and are set to be imposed from next month for five years.
The Commission, which oversees the bloc's trade policy, has said they would counter what it sees as unfair Chinese subsidies after a year-long anti-subsidy investigation, but it also said on Friday it would continue talks with Beijing.
A possible compromise could be to set minimum sales prices. In a pivotal vote on Friday, 10 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 EU 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 region's biggest economy and major car producer, Germany, voted against the proposal, sources said on Friday.
The Commission, which oversees the bloc's trade policy, has said they would counter what it sees as unfair Chinese subsidies after a year-long anti-subsidy investigation, but it also said on Friday it would continue talks with Beijing.
A possible compromise could be to set minimum sales prices. In a pivotal vote on Friday, 10 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 EU 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 region's biggest economy and major car producer, Germany, voted against the proposal, sources said on Friday.