The European Union has voted to impose tariffs on Chinese electric cars

The European Union has voted to impose tariffs on Chinese electric cars

Employees work on an electric vehicle (EV) production line at the Jinhua Lipomotor factory in east China's Zhejiang province on September 18, 2024.

Little brother Berry AFP | Getty Images

The European Union on Friday voted to impose specific tariffs on battery electric vehicles (BEVs) made in China.

“Today, the European Commission's proposal to impose specific countervailing duties on imports of battery electric vehicles (BEVs) from China received the necessary support from EU member states to adopt the duties,” the EU said in a statement.

It added that the decision marks another step towards ending the commission's anti-subsidy investigation into electric vehicles from China, which was launched in October 2023.

The EU first announced it would impose higher tariffs on Chinese electric vehicle imports in June, on the grounds that they “benefit heavily from unfair subsidies” and pose a “threat of economic injury” to electric vehicle manufacturers in Europe.

Tariffs were also revealed for individual companies linked to the level of cooperation and information they provided to the EU as part of the bloc's investigation into EV production in China.

Temporary tariffs were put in place from early July.

The European Commission then revised its tariff plans in September based on “substantiated comments on provisional measures” from interested parties.

A spokesman for China's commerce ministry told reporters that Beijing believes the probe into China's subsidies to its electric vehicle industry has come to “pre-determined conclusions,” adding that the bloc is promoting unfair competition.

On Friday, the EU said it was still looking for other solutions, even if the tariffs were adopted.

“In parallel, the EU and China continue to work hard to explore an alternative solution that must be fully WTO-compatible, adequate, monitorable and enforceable to address the harmful subsidies established by the Commission's investigation,” it said.

Division in the EU

The decision follows months of debate and discussion among EU member states, who have expressed differing views on raising tariffs on imported Chinese-made EVs.

While France has been a big supporter, having previously pushed the EU to launch an investigation into potential tariffs, Germany has advocated against them, citing concerns about the consequences for its own struggling carmakers.

Hungarian Foreign Minister Peter Szijjarto said on Thursday that his country would veto a European Commission proposal that advances tariffs of up to 45%, Reuters reported.

Potential retaliation from China has been a key concern for some EU members, especially since China has already launched anti-dumping investigations into EU exports of pork and brandy, as well as anti-subsidy investigations into EU dairy products.

— CNBC's Ryan Brown contributed to this story.

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