Chinese electric vehicle (EV) manufacturers will soon encounter significantly higher tariffs when selling their high-end goods in the European Union (EU).
A recent vote among EU member states, meant to determine whether to impose steeper tariffs on China-made EVs, ended inconclusively, with many countries abstaining. This forced the European Commission to step in and resolve the issue by advancing its proposal.
The final breakdown of the vote, which was not officially published, was shared with Euronews by several diplomats. Out of the 27 member states:
- 10 voted in favor: Bulgaria, Denmark, Estonia, France, Ireland, Italy, Lithuania, Latvia, the Netherlands, and Poland (representing 45.99% of the EU population).
- 12 abstained: Belgium, the Czech Republic, Greece, Spain, Croatia, Cyprus, Luxembourg, Austria, Portugal, Romania, Sweden, and Finland (31.36%).
- 5 opposed: Germany, Hungary, Malta, Slovenia, and Slovakia (22.65%).
The high level of abstentions highlights ongoing concerns about Europe’s approach to China. While there is general agreement that Beijing’s unfair trade practices require a strong, unified response, fears of economic retaliation have softened the resolve of some EU capitals as the decision deadline approached.
Ultimately, the European Commission, which holds exclusive authority over the bloc’s trade policy, broke the deadlock and ensured the new tariffs would take effect.
The Commission’s concerns stem from China’s extensive use of subsidies to boost its domestic EV producers, allowing them to sell at artificially low prices in global markets. The Commission warned that without decisive action, EU carmakers could face unsustainable losses, leading to a potential collapse in the net-zero mobility sector—an industry crucial to 2.5 million direct and 10.3 million indirect jobs in Europe. EU manufacturers are already grappling with high energy costs, weak consumer demand, and fierce global competition.
The newly imposed tariffs are intended to mitigate the impact of these subsidies and narrow the price gap between Chinese and EU firms. The tariffs will vary depending on the level of cooperation with the Commission’s investigation:
- Tesla: 7.8%
- BYD: 17%
- Geely: 18.8%
- SAIC: 35.3%
- Other cooperating Chinese EV producers: 20.7%
- Non-cooperating Chinese EV producers: 35.3%
These duties, set to take effect in early November, will remain in place for at least five years. They will be added to the existing 10% tariff, meaning some Chinese manufacturers could face tariffs exceeding 45% when entering the EU market.
