EU Tariffs on Chinese EVs: A Divisive Trade Standoff

The EU plans to impose significant tariffs on Chinese electric vehicles, despite opposition from Germany, sparking trade tensions with China. The tariffs aim to counteract unfair subsidies. Discussions with China continue, as the decision exposes EU internal divisions and potential trade conflicts loom.

The European Union is sticking to its plans to implement hefty tariffs on Chinese electric vehicles, according to an announcement made by the bloc's executive on Friday. Despite Germany's opposition, the proposed duties, reaching up to 45%, could cost carmakers billions and are set to be enforced next month for five years.

This tariff decision comes after a year-long investigation into what the EU sees as unfair Chinese subsidies. Though some EU countries favor a strong stance against China to address such issues, others fear potential trade wars. Friday's vote showcased the lack of consensus within the EU, as the motion passed with 10 votes for, five against, and 12 abstentions.

In response, BMW's CEO has labeled the move as detrimental to the European car industry. Still, the Commission claims to have secured the necessary support to adopt these measures, reflecting an increasingly hardened stance towards Beijing. Negotiations continue as both regions seek to avoid an economic conflict.

(With inputs from agencies.)