European Union votes to impose tariffs on Chinese electric vehicles
Istanbul, October 4 (Hibya) - The European Union on Friday voted to adopt definitive tariffs on China-made battery electric vehicles (BEVs).
“Today, the European Commission’s proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from EU Member States for the adoption of tariffs,” the EU said in a statement.
In June, The EU announced that it would slap higher tariffs on Chinese electric vehicle imports, arguing that they benefited “heavily from unfair subsidies” and posed a “threat of economic injury” to European electric vehicle producers.
In a statement out Friday, the China Chamber of Commerce to the EU expressed “deep disappointment with this voting outcome,” adding that it is “strongly dissatisfied with the EU’s adoption of protectionist trade measures.”
The chamber also called on the EU to be “cautious” about final measures, delay their implementation, and focus on finding solutions through negotiations. The EU said on Friday that it was still looking for other solutions, even as the tariffs were adopted.
The Chinese Chamber of Commerce to the EU further reiterated that the bloc’s probe into Chinese EVs was a “politically motivated and unjustified protectionist measure,” saying that higher duties would impact Chinese companies and international businesses producing EVs in China.
Autos stocks in Europe were 1.42% higher. The decision follows months of debates and deliberations between EU members, who have expressed varying opinions on increasing tariffs.
While France supported the measure after pushing the EU to start negotiations, Germany advocated against the step, raising concerns about the consequences for its struggling car makers.
Potential retaliation from China has been a critical concern for some EU members, especially as China has already launched anti-dumping probes into EU pork and brandy exports and an anti-subsidy investigation into EU dairy products.
On Friday, German Finance Minister Christian Lindner urged the European Commission not to start a trade war, adding, “Despite the vote for potential punitive tariffs against China, Ursula von der Leyen’s EU Commission should not trigger a trade war. We need a negotiated solution.”