Germany's Strategic Abstention in EU-China EV Tariff Vote

Germany will abstain from the EU vote on provisional tariffs for China-made electric vehicles (EVs). The decision aligns with the EU Commission's ongoing anti-subsidy investigation and negotiations with China. The preliminary tariffs don't need member states' approval, but the final decision does. Germany supports the investigation while wary of trade conflicts.

Germany is set to abstain in Monday's vote by European Union member states on imposing provisional tariffs on China-made electric vehicles, sources told Reuters on Friday. This vote is the first test of support for Brussels' landmark trade case.

The provisional tariffs, which could be as high as 37.6%, do not require the backing of member states. However, the final tariffs could face opposition if a qualified majority of the EU's 27 members is against them. An abstention at this stage means Germany essentially supports the Commission as it negotiates with Beijing.

Germany's decision comes in the spirit of 'critical solidarity' with the EU Commission, according to sources. Meanwhile, German carmakers, who generated a third of their sales in China last year, oppose the tariffs and fear a trade conflict. France supports the case firmly, while Hungary condemns it. Chancellor Olaf Scholz expressed hope that the EU would reach an agreement with China on EVs, noting that it would benefit Europe's car industry.

(With inputs from agencies.)