EU updates tariff situation on Chinese electric cars, surprised by Germany's action

On August 5th, European Trade Commissioner Valdis Dombrovskis stated that tariffs on electric vehicles imported from China into the European Union (EU) could take effect in November, following a vote by member states at the end of October.

In early July 2024, the EU decided to impose temporary tariffs ranging from 17.4% to 37.6% on electric vehicles manufactured in China. (Source: AFP)

According to Valdis Dombrovskis, EU member states understand the need to protect the domestic automotive industry due to existing trade risks.

The European Trade Commissioner pointed out: "China's market share of battery-powered electric vehicles is growing very rapidly in Europe. According to market research firm Dataforce, as of June 2024, electric vehicle brands from the country with the world's largest population accounted for 11% of the European electric vehicle market."

In early July, the 27-member bloc decided to impose temporary tariffs ranging from 17.4% to 37.6% on electric vehicles manufactured in Asia's number one economy . This tariff is applied in addition to the previous 10% tariff.

The move has sparked outrage in China, while supporters argue that the tariffs are necessary to protect EU producers from unfair competition.

An investigation conducted by the European Commission last year determined that Chinese government subsidies are allowing its companies to keep prices low.

Beijing has rejected those claims, arguing that its industry has developed naturally.

Commissioner Dombrovskis said he was ready to seek "a solution acceptable to both sides" to resolve the tensions, although this would require the world's second-largest economy to change its subsidy policies.

Some EU countries, particularly Germany, are concerned that imposing tariffs on imported cars from the Northeast Asian country could harm Europe, as it is the bloc's second-largest trading partner.

Many other voices have also highlighted the importance of Chinese technology to Europe's green transition. They worry that moves to shun imports from Beijing will make products like solar panels and electric vehicles more expensive for consumers on the continent.

However, despite publicly criticizing the tariffs, Berlin did not vote against them in a July poll. Instead, the EU's largest economy opted for a abstention.

Nine other countries also abstained from voting, while four opposed the tariffs and eleven members voted in favor.

To prevent the imposition of tariffs, a vote of no confidence is needed from 15 countries representing 65% of the bloc's population.

To date, China's response to European tariffs remains unclear, although it has threatened to impose tariffs on goods from the 27-member bloc, such as pork and spirits.

Source: https://baoquocte.vn/eu-cap-nhat-tinh-hinh-thue-quan-ap-len-xe-dien-trung-quoc-bat-ngo-voi-hanh-dong-cua-duc-281544.html