Potentially, the EU could enforce custom duties on electromobility vehicles originating from China.
EU countries fall short of blocking new tariffs on Chinese electric cars despite Germany's opposition, led by the Chancellor. However, the move is still on the table: The EU now has the power to implement extra duties on electric vehicles from China.
Not enough EU countries voiced their opposition to the plan, as confirmed by several EU diplomats. This allows the EU Commission to consider imposing tariffs of up to 35.3%. Germany couldn't sway the other countries' decisions. The most populous EU nation voted against the tariffs in Brussels, but a majority of at least 65% of EU countries, representing the total EU population, was needed to halt the plan. Besides Germany, only four other member states voted against it.
According to the diplomats, ten EU countries supported the measure, while twelve remained neutral. Five countries openly voiced their opposition to the tariffs, representing about 20% of the EU population.
Initially, the German government was divided on the issue, but Chancellor Olaf Scholz made a decision shortly before the vote. The finance and transport ministries, led by the FDP in the traffic light coalition, pushed for a 'no' vote from Germany in Brussels. Scholz also raised concerns about potential retaliatory tariffs. On the contrary, the economics and foreign ministries, led by the Greens, supported abstention to continue negotiating a solution with China.
The European Commission announced the potential tariffs following an investigation that alleged Beijing was manipulating the EU market by subsidizing electric vehicles. Whether these import duties will take effect in early November depends on the Commission. However, if a compromise with China is reached in time, the tariffs can be scrapped.
Due to the numerous abstentions, a clear pro-tariff majority was not formed on Friday. As a result, the 27 EU countries could not release a joint statement.
The lack of sufficient opposition from EU countries enabled the EU Commission to contemplate implementing tariffs of up to 35.3% on electric vehicles from China. Despite Germany's opposition and a 'no' vote from its most populous nation, only a few other member states joined in the vote against the proposed tariffs.
