The European Union voted this Friday, October 4, on the proposal to impose customs tariffs on 100% electric vehicles coming from China.
“The European Commission’s proposal to establish definitive countervailing duties on imports of battery electric vehicles (BEVs) from China received the necessary support from EU Member States today for the adoption of customs duties. This fact represents another step towards the conclusion of the Commission’s anti-subsidy investigation”, states the press release from the European Commission.
Thus, the Commission can now introduce customs tariffs of up to 35.3% on Chinese car manufacturers, including BYD, Geely, and SAIC. According to the executive, the customs duties will be applied in addition to the normal EU automobile tax of 10%. The Commission also indicated that the final regulation is expected to be published in the Official Journal by October 30.
“At the same time, the EU and China will continue to work hard to explore an alternative solution that would have to be fully compliant with the World Trade Organization (WTO), suitable for addressing the issue of harmful subsidies identified by the Commission’s investigation, and subject to monitoring and enforcement”, concludes the Commission’s statement.
According to sources from the European Commission, ten EU Member States, representing 31.36% of the European population, supported the measure, five voted against (22.65%), and 12 abstained (44.99%).
It should be noted that a qualified majority of 15 Member States representing 65% of the population of the European Union would be required to block the proposal for customs duties on 100% electric vehicles from China.
Germany, the largest car manufacturer in Europe, voted against it, fearing that China’s retaliation could harm German car exports to China.
