In a significant advisory vote, European Union governments revealed split opinions on imposing tariffs on China-built electric vehicles (EVs). The European Commission proposed duties up to 37.6% to counter alleged unfair subsidies. A dozen EU members supported the tariffs, four opposed, and 11 abstained, highlighting the bloc’s internal conflict.
The Commission will consider these views before deciding on definitive duties, potentially leading to a binding vote. These tariffs could last five years if approved but might provoke a trade war with China. Germany, Finland, and Sweden abstained, citing concerns over the broader implications.
The ongoing investigation by the Commission will continue for another three months. There are signs of compromise, as the Commission may consider lower tariffs for specific models like BMW’s China-made electric Mini and Volkswagen’s Cupra Tavascan.