Competitiveness

Chinese electric cars, green light for EU duties of up to 45%. Germany opposes: 'No to trade wars with Beijing'

The duties were decided by the EU executive in reaction to the import of cars into Europe whose production in China is subsidised by the state. However, the Commission left the door open, stating that 'negotiations with China are continuing'.

4 October 2024

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Key points

No majority neither for nor against
Rome in favour of duties on Chinese e-cars, Berlin against
Germany: 'EU not to open trade war with China'
Duties introduced in July

2' min read

The European Union has voted to impose tariffs of up to 45% on electric vehicles from China. This move is bound to increase trade tensions with Beijing.

However, the Commission left the door open for the search for an agreement, stating that 'negotiations with Beijing are continuing'.

No majority, Commission decides

According to diplomatic sources, in the EU trade defence committee meeting to decide on the confirmation of duties on the import of Chinese electric cars, no qualified majority was reached either for or against the European Commission's proposal. Ten member states voted in favour, 5 against, 12 abstained.

Rome for, Berlin against

Ten EU countries, including Italy and France, voted in favour of the go-ahead for the final additional duties on Chinese electric cars. The five countries against were led by Germany. Among the 12 abstainers was Spain.

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Germany: 'EU not to open trade war with China'

"Ursula von der Leyen's European Commission should not trigger a trade war despite voting in favour of possible punitive tariffs against China. We need a negotiated solution'. German Finance Minister Christian Lindner wrote this on X after the EU countries' vote in Brussels paving the way for the imposition of duties against Chinese e-cars.

Berlin, after an animated internal debate within Olaf Scholz's semaphore majority, voted against following the hardest line indicated by the social democratic chancellor himself and the liberal finance minister. In the minority was the voice of the Greens.

Duties introduced in July

The duties were decided last July by the EU executive in reaction to the import of cars whose production in China is subsidised by the state. Previously launched tariffs ranged from 7.8% for Tesla to 35.3% for SAIC and other companies that did not cooperate with the EU investigation.

These tariffs are in addition to the standard EU 10% duty on car imports. The decision to confirm the duties for a period of five years comes as Brussels and Beijing negotiate a possible compromise. Evidently, at this stage the EU is trying to put its foot down.