EU takes steps towards ‘trade war’ with China


(MENAFN) The European Commission has announced its intention to impose tariffs on battery electric vehicles (BEVs) imported from China, a move that has garnered support from a significant portion of European Union member states. This decision marks a critical phase in the Commission's ongoing anti-subsidy investigation into Chinese electric cars, which began in October 2023.

According to the statement released by the European Commission, the new tariffs will range from 7.8 percent for foreign manufacturers like Tesla, which produce vehicles in Asia, to a steep 35.3 percent for Chinese companies that reportedly did not cooperate during the investigation. These tariffs will be applied for the next five years and are in addition to the European Union's standard 10 percent import duty on cars.

The Commission stated, “Today, the European Commission’s proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from European Union Member States for the adoption of tariffs.” Reports indicate that ten out of the 27 European Union member states, including major players like France, Italy, and Poland, backed the imposition of these tariffs. However, the decision faced opposition, with five countries, notably Germany and Hungary, voting against it, while 12 others, including Spain and Sweden, chose to abstain.

Brussels has defended the tariffs as a necessary measure to shield European automakers from what it describes as unfair competition, asserting that Chinese car manufacturers benefit from substantial state subsidies. This argument highlights a growing concern within the European Union about maintaining a level playing field in the rapidly evolving electric vehicle market.

However, the proposed tariffs have sparked significant debate, particularly from Germany, the European Union’s largest economy and a prominent player in the automotive sector. German officials have expressed strong objections to the tariffs, warning that such measures could escalate into a trade war with China, potentially destabilizing economic relations between the two regions.

As the European Union moves forward with these tariffs, the implications for international trade and the electric vehicle market remain uncertain. Critics warn that the European Union's actions could lead to retaliatory measures from China, further straining diplomatic and economic ties between the two powers. This situation raises critical questions about the future of trade in the global automotive industry, particularly as nations seek to balance domestic interests with the realities of international competition.

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