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Majority Of EU Members To Vote In Favor Of Imposing Tariffs On China-Made EVs

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The duty proposal cannot be legally imposed unless at least 15 member states (65 percent) of the commission give it the go-ahead via their votes.

Taking a significant stride in growing Europe’s electric vehicles(EV) ecosystem, the European Union (EU) members have now decided to cast their votes on an imperative proposal, which is very likely to impose tariffs on China-made EVs. In September, the EU already revised the tariff amount to 7.8 percent for Tesla and 3.8 percent for SAIC. 

The commission has also notified that all the producers who do not abide by the anti-subsidy investigation will be obtruded with an import duty. The EU has deployed a standard 10 percent duty on vehicles imported from any country. Twenty-seven EU member states will take the final call on the proposed duty structure. The duty proposal cannot be imposed legally if at least 15 member states (65 per cent) of the commission give the go-ahead via their votes.

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In September 2023, the EU decided to investigate Chinese-made electric vehicles because they are being sold at a very low price, which is hampering the market for EVs made in Europe. The situation is serious, as the commission described it, because China’s price parity could force European automobile manufacturers to shut down their units and terminate their employees. 

As per the commission, every Chinese company receives a high amount of subsidies at every stage of production, and the country has the potential to manufacture 3 million EVs annually, which is two times more than the market size of Europe. China has lambasted the investigation, claiming it to be unfair practices and protectionism. It also stated that the high tariffs would destroy the economic amiability between the two regions.  

It was even reported that Poland, France, Greece, and Italy would vote in favor of the decision. In an effort to gain more backing or votes, there is a higher chance that the amended proposal will be submitted by the commission at a later stage. Now, if the duties are imposed, provisional duties dating back to July would also have to be paid. Till the investigation ceases, the tariffs can be covered with bank assurance. 

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