2024-07-03 17:12:59
The European Union (EU) is mulling over continuing to impose tariffs of up to 48% on Chinese electric vehicles. France is taking the lead in introducing tariffs, but Germany is opposed to them, fearing that retaliatory tariffs will be imposed on its own cars exported to China.
Reuters reported on the 3rd (local time) that, based on an informal poll of EU member state officials, a significant number of member states agree with the need to protect the domestic electric vehicle industry, but are reluctant to readily agree to imposing additional tariffs on Chinese electric vehicles due to the trade conflict with China.
On the 12th of last month, the EU Commission announced that it would impose a temporary tariff of up to 38.1% on top of the existing 10% tariff starting from the 4th, claiming that Chinese electric vehicles, backed by massive government subsidies, were being dumped into the European market at dirt-cheap prices. The tariffs apply not only to electric vehicles from Chinese companies such as BYD, Geely, and SAIC, but also to models produced in China by Western companies such as Tesla (USA) and BMW (Germany).
EU member states will vote in October on whether to continue imposing tariffs of up to 48.1% on Chinese electric cars after the commission concludes its anti-dumping investigation. If at least 15 countries representing more than 65% of the EU’s population vote against the tariffs, the current measures will be suspended.
France, Italy and Spain, which account for 40% of the EU population, support the imposition of tariffs. Spain’s Economy Ministry emphasized to Reuters on the same day, “If our companies are harmed and cannot compete on equal terms, Europe must defend itself.” However, sources familiar with the matter told Reuters on the same day that the Czech Republic, Greece, Ireland and Poland are still considering it.
Germany has effectively signaled its opposition to tariffs, saying it must resolve the anti-dumping issue through negotiations with China. A German economics ministry spokesman said in a briefing last month that “it is important to find an amicable solution” to tariffs on Chinese electric vehicles, while Chancellor Olaf Scholz’s spokesman said, “We should not erect trade barriers but promote global trade.”
If the EU continues to impose tariffs on Chinese electric vehicles, China could retaliate by imposing additional tariffs on cognac, pork, and automobiles produced within the EU. In fact, the Chinese Ministry of Commerce launched an anti-dumping investigation into EU pork on the 17th of last month. The EU automobile industry has also expressed reluctance to impose tariffs on the EU, considering the Chinese market, and environmental groups are also opposing it, citing the increased price of electric vehicles.
(Seoul = News 1)
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2024-07-03 17:12:59