AFP – European Union countries on Friday gave final approval to hefty tariffs on Chinese-made electric cars, despite strong opposition led by Germany and fears it could spark a trade war with China. I gave the go-ahead.
The European Commission provisionally approved the measure in June after an investigation found that the Chinese government's state aid to automakers was unfair, but it has now given free reinstatement for five years starting at the end of October. Customs duties can be imposed.
Ten member states, including France, Italy and Poland, supported imposing tariffs of up to 35.3% on top of the current 10% tariff, European diplomats told AFP.
Only five countries, including Germany and Hungary, voted against it, while 12 countries, including Spain and Sweden, abstained.
Although the tariffs did not receive support from a majority of states, opponents were not strong enough to block them. This required at least 15 states representing 65 percent of the bloc's population.
The choice about how to proceed is therefore in the hands of the European Commission, which is “expected to take a decision in line with the proposals,” said one EU diplomat.
China denounced the new tariffs as “protectionist” and warned they would spark a trade war.
– France vs Germany –
The additional tariffs will also apply to cars manufactured in China by foreign groups such as Tesla at various rates, including a 7.8% tariff.
Brussels aims to protect European car manufacturers in a vital industry that provides jobs to around 14 million people across the European Union but does not benefit from heavy state subsidies like in China. He said that.
Canada and the United States have imposed much higher 100% tariffs on electric vehicle imports from China in recent months.
France and Germany are at loggerheads over EU tariffs, which Paris says are necessary to level the playing field between EU and Chinese automakers.
But Germany, which is known for its strong auto industry and major manufacturers such as BMW, Volkswagen and Mercedes, have invested heavily in China, saying there was a risk the EU would hurt it with tariffs. We are calling for the continuation of negotiations.
Signaling concerns spreading across Europe, Spanish Prime Minister Pedro Sánchez reversed course last month despite Madrid's initial support and asked Brussels to “reconsider”.
~Walking the tightrope of the EU~
Hungary also voiced its opposition, with Prime Minister Viktor Orbán condemning the tariffs as “the next step in the economic cold war” before the vote.
The Chinese government has threatened to retaliate with force and has already launched investigations into European brandy, dairy products and pork products imported into China.
China has tried in vain to suspend tariffs in hopes of resolving the issue through dialogue, but talks have so far failed to reach an agreement that satisfies the EU.
The commission said any tariffs could be lifted later if China addresses the EU's concerns.
Trade tensions between China and the EU are not limited to electric vehicles, with the investigation launched by Brussels also targeting Chinese subsidies for solar panels and wind turbines.
The bloc faces difficult challenges as it seeks to foster clean technology industries and invest in a green transition without triggering a painful trade war with China.
