This week, the EU is scheduled to cast votes on applicable tariffs for Chinese-produced automobiles.
The European Union is edging closer to making it more challenging for China to sell its cars in Europe. The commission alleges that Beijing is skewing competition through state aid, leaving local manufacturers at a disadvantage. Germany is against harsh tariffs. A conclusion is anticipated this week.
In the ongoing quarrel concerning Chinese electric vehicles, European tariffs are becoming increasingly imminent. As per diplomatic sources, members of the 27 EU nations are scheduled to cast votes this week on the commission's proposal to impose additional tariffs of up to 36.3% on imported electric vehicles from China. Germany had recently advocated for a diplomatic resolution.
Besides the German government, Spain has also voiced opposition to the tariff hikes, while other EU nations like France, Italy, and the Baltic states support the commission's plans. To halt the implementation, a supermajority of 15 member states representing 65% of the European population would be required by Friday in Brussels, a situation considered unlikely.
The EU commission accuses China of granting unlawful subsidies to its auto industry and fears disadvantages for European manufacturers. Consequently, Brussels has announced tariffs that will differ for each company. Companies such as Volkswagen and their Chinese joint venture partners will be subject to a 21.3% surcharge for imports into the EU.
These tariffs are set to take effect by the end of October and will initially apply for five years. Even after the implementation of the tariffs, dialogues with Beijing will remain feasible, as per Brussels. So far, talks have failed to produce any results, with Chinese trade minister Wang Wentao leaving Brussels in September without a compromise.
Amidst this dispute, the car market in Europe could see significant changes due to the potential tariffs on Chinese imported vehicles. Despite the opposition from some EU members, including Germany and Spain, the commission's proposal to impose tariffs on Chinese electric cars seems to be gaining traction within the EU's car market.
