EU backs steep tariffs on Chinese EV imports

The European Union is to impose steep tariffs on imports of Chinese electric vehicles, it was confirmed on Friday, after a majority of member states voted in favour.

Despite vocal opposition from some countries, including Hungary and Germany, the vote means tariffs of up to 35.3% will be imposed on imports of battery EVs, on top of an existing 10%.

The European Commission wants to protect Europe’s EV industry from cheap Chinese competition, which benefits from subsidies.

It launched an anti-subsidy probe into China’s EV industry in September last year, before proposing heightened tariffs earlier this year. But the probe has angered Beijing, which has already threatened retaliatory measures against the EU’s dairy, brandy and pork industries.

A number of member states are also understood to have their reservations, with Germany in particular concerned about any repercussions hurting its domestic car industry and sluggish economy.

China is one of the most critical markets for Germany’s car makers, which include BMW, Mercedes-Benz Group and Volkswagen.

Although the Commission did not publish a breakdown of the vote, it was widely reported that Germany had voted against the proposal. A number of countries also abstained. Those in favour reportedly included France, Ireland, Italy and Poland.

Talks between Brussels and Beijing are ongoing, however.

Announcing the result of the vote, the Commission also noted: "In parallel, the EU and China continue to work hard to explore an alternative solution that would have to be fully WTO-compatible, adequate in addressing the injurious subsidisation established by the Commission’s investigation, monitorable and enforceable."

The investigation’s final findings will be published by 30 October.