The European Union has voted to adopt definitive tariffs on electric vehicles manufactured in China and imported into Europe. The EU had announced its intention to increase tariffs on Chinese electric car imports as early as last June, arguing that they benefit from “unfair subsidies,” consequently posing an economic threat to automakers in Europe. This will only worsen relations with China, which has already declared that it will protect its companies.
The European Union votes in favor of tariffs up to 45% on electric vehicles imported from China
The tariffs will reach up to 45% on electric vehicles imported from China. European Commission President Ursula Von Der Leyen commented: “The electric vehicle sector holds huge potential for Europe’s future competitiveness and green industrial leadership. EU car manufacturers and related sectors are already investing and innovating to fully develop this potential. Wherever we find evidence that their efforts are being impeded by market distortions and unfair competition, we will act decisively.”
“And we will do this in full respect of our EU and international obligations – because Europe plays by the rules, within its borders and globally. This anti-subsidy investigation will be thorough, fair, and fact-based,” she added.
The decision has nevertheless generated debates, with Germany expressing concern about the consequences for its automakers, which have a large market in China, considering that in 2023 China accounted for a third of their sales. The tariffs will last for five years. According to some people familiar with the results, ten member states voted in favor of the measure, while Germany and four other states voted against, and 12 abstained.
Viktor Orban, Hungarian Prime Minister, expressed his dissent on the measure: “What they are making us do right now, or what the EU wants to do, is an economic cold war”. The CEOs of Volkswagen and BMW also think the same way, saying that “no one will benefit” from this measure and it “represents the wrong approach”. In the past, Carlos Tavares, CEO of Stellantis, also disagreed with the US government’s decision to apply 100% tariffs on Chinese electric vehicles.