Despite Germany’s no vote, the Union can impose additional tariffs on electric cars from China. A sufficient majority of EU states have not spoken out against the project, as several EU diplomats confirmed to the German Press Agency. This means that the EU Commission can decide to introduce taxes of up to 35.3 percent.
The new tariffs will apply from October, affecting Chinese electric car manufacturers such as BYD and Geely. Germany was unable to assert its position. Although the most populous EU country voted against the tariffs in Brussels, in order to be able to prevent them, a majority of the EU states would have had to speak out against the plan, which together make up at least 65 percent of the total population of the EU.
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The European Commission announced the additional tariffs after an investigation accused Beijing of promoting electric cars with subsidies that distort the EU market. It is up to the Commission whether the import duties will come into force at the beginning of November. But if a solution is reached with China at the negotiating table in time, the tariffs can be stopped.
The German car manufacturer BMW is warning of negative consequences after the EU vote on additional tariffs on electric cars from China. “Today’s vote is a fatal signal for the European automotive industry,” said the head of the Bavarian group, Oliver Zipse. “What is needed now is a quick negotiated solution between the EU Commission and China in order to prevent a trade conflict that would otherwise only result in losers.” Mercedes also fears that possible punitive tariffs will lead to a deterioration in competitiveness. The Federation of German Industries (BDI) is calling for a negotiated solution.
“It is essential that the European Commission and the Chinese government continue to try to reach an agreement through negotiations in order to create a level playing field and avoid unequal conditions for European and Chinese manufacturers,” said the local Ministry of Economic Affairs.
The FPÖ took a clear position against the punitive tariffs: “On the one hand, no longer allowing new cars with combustion engines to be sold from 2035, and on the other hand, making the import of the urgently needed electric cars massively more expensive at the latest is pure planned economy and therefore strictly rejected,” said FPÖ transport spokesman Christian Hafenecker according to a broadcast.
The ÖAMTC also assessed the decision in Brussels critically: “Europe has very ambitious climate goals that cannot be achieved without a significant increase in e-mobility,” said Bernhard Wiesinger, head of the ÖAMTC interest group. “A broader transition can only succeed if all electric car manufacturers continue to feel price and innovation pressure in the future.”
The article is continually updated.
