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On Friday, the European Union officially voted to establish definitive tariffs on battery electric vehicles (BEVs) manufactured in China.
However, its member states have shown a split in their stance regarding the imposition of tariffs, with advocates arguing that these measures are essential for protecting European automotive manufacturers, while detractors express concerns about potential retaliatory actions from Beijing.
“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 E.U. Member States for the adoption of tariffs,” stated the E.U. in an announcement.
The E.U. initially revealed its intention to impose increased tariffs on imports of Chinese electric vehicles in June, citing that these vehicles are supported by “unfair subsidies” and represent a “threat of economic injury” to local electric vehicle manufacturers in Europe.
Tariffs were also detailed for specific companies, which were determined based on their levels of cooperation and the information they provided to the E.U. during the bloc’s investigation into electric vehicle production in China that commenced last year. Provisional tariffs were enacted starting in early July.
In September, the European Commission modified its tariff proposals following “substantiated comments on the provisional measures” from various stakeholders.
A representative from China’s Ministry of Commerce said to reporters that Beijing maintains its position that the investigation into subsidies for its electric vehicle sector has reached “pre-set conclusions,” asserting that the E.U. is creating unfair competition.
Conflicting Stances Among Member States
This decision follows extensive discussions and debates among E.U. member nations, which have voiced differing views on raising tariffs on imported Chinese electric vehicles.
France has been a strong proponent of these measures, having previously urged the E.U. to initiate investigations into potential tariffs. Conversely, Germany has opposed such actions, citing worries about repercussions for its own struggling automotive industry.
Hungarian Foreign Minister Peter Szijjarto indicated on Thursday that Hungary would block a proposal from the European Commission advocating for tariffs as high as 45%.
Concerns regarding possible retaliation from China have been significant for several E.U. members, particularly since China has already initiated anti-dumping investigations into pork and brandy imports from the E.U., along with an anti-subsidy investigation concerning dairy products from Europe.
Earlier this week, Reuters reported that the E.U. is open to continuing discussions even after the tariffs are put into effect.