EU Governments Divided Over China-Built EV Tariffs

The European Union (EU) governments showcased differing opinions on imposing tariffs on Chinese electric vehicles (EVs). The European Commission proposed temporary duties, citing unfair subsidies. A non-binding vote saw mixed support, with Germany and others abstaining. The decision may depend on further investigations and the potential risk of a trade war with China.

EU governments displayed divided views on the merit of imposing tariffs on Chinese-built electric vehicles during a critical, though non-binding, vote. According to sources, the European Commission has suggested provisional duties as high as 37.6% to counter unfair subsidies and sought the EU's advisory opinions.

A dozen member countries supported the tariffs, four were against, and 11 abstained. The European Commission will consider these positions as it decides on definitive duties in what is one of its most prominent trade cases to date. Should the Commission proceed with tariffs, they will be subject to a binding vote by EU members.

The advisory vote results indicate wavering stances, highlighting concerns about a potential trade war with China. The Commission's investigation will continue for another three months, with possible compromises on lower tariffs for specific brands like BMW and Volkswagen under consideration.

(With inputs from agencies.)