EU Imposes Tariffs on Chinese Electric Vehicles Amid Trade Tensions

The European Commission received enough support to impose tariffs on Chinese electric vehicles, aiming to counter perceived unfair subsidies. Despite some EU opposition, the proposal passed with backing from key EU nations. The measure risks retaliatory actions from Beijing, yet dialogues continue for a potential resolution.

The European Commission announced it has secured sufficient backing from EU member states to impose tariffs of up to 45% on imports of Chinese-made electric vehicles. This marks the highest-profile trade case for the bloc, potentially inviting retaliation from Beijing.

After conducting a year-long anti-subsidy investigation, the Commission proposed these duties for five years to counteract what it views as unfair Chinese subsidies. In Friday's vote, 10 EU members supported the tariffs, five opposed, and 12 abstained.

While Germany, a major car-producing economy, voted against the proposal, the measure received necessary backing as nations like France, Greece, Italy, and Poland favored it. The EU executive still plans to discuss alternative solutions with Beijing.

(With inputs from agencies.)