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The EU Plans To Introduce Tariffs On Chinese EVs Up To 45 Percent
The European Union plans to vote on Oct. 4 on whether to impose tariffs of as much as 45 percent on imported electric vehicles (EVs) made in China, people familiar with the matter said.
Member states have received a draft regulation for the proposed measures, sources say, writes Bloomberg.
The vote among member states was briefly delayed amid negotiations with Beijing in an attempt to find a solution that would avoid new levies.
Negotiations between the two sides may continue even if member countries adopt tariffs, Bloomberg reported earlier. The new date could still be moved, people familiar with the situation also said.
The vote came after an investigation by the European Commission found that China was unfairly subsidizing its EV industry and that the tariffs were needed to prevent European manufacturers from being disadvantaged.
China denies any wrongdoing on its part and has threatened tariffs on European products such as dairy products, brandy and pork, as well as cars with large engines.
If this decision were to be made, the tariffs would be valid for the next five years, and the new tariffs would be above the existing rate of ten percent.
Member states, including Germany and Spain, have warned against imposing tariffs, saying it could spark a trade war. China is the second largest trading partner in Europe and last year’s trade was 739 billion euros ($825 billion).
