EU's Bold Tariff Move: China's Electric Vehicle Challenge

The EU plans to impose up to 45% tariffs on China-made electric vehicles, despite opposition from Germany, which exposes a major rift. The tariffs aim to counter unfair Chinese subsidies but risk triggering retaliatory measures from China. The decision has sparked divided reactions within the EU.

The European Union is moving forward with significant tariffs on Chinese-manufactured electric vehicles, set to be enforced despite Germany's opposition. The proposed duties of up to 45% are part of the EU's strategy to counter what it perceives as unfair Chinese subsidies. This decision highlights the most substantial trade conflict with Beijing in a decade.

Amidst EU members split on the issue, the European Commission secured the necessary support for the tariffs. While 10 member states supported the proposal, five opposed it, and 12 abstained. Germany, leading in car production, stood against the measure. Still, the Commission remains open to negotiations with Beijing for a compromise solution.

The tariffs could provoke a tit-for-tat trade response from China, which has already expressed strong opposition, considering the move violative of WTO rules. Economic and political leaders are concerned about a potential trade conflict, while others see the tariffs as a necessary step to ensure fair competition in the EU's automotive sector.

(With inputs from agencies.)