Italy in Favor of Extra China EV Tariffs Ahead of Key EU Vote

TMTPost -- One of the largest European economies expresses its position in favor of extra tariffs on electric vehicle (EV) imports from China ahead of a key vote that determines the five-year elevated tariffs across the European Union.

Credit：Xinhua News Agency

"We support the duties that the EU Commission proposes to protect the competitiveness of our companies," Italian Foreign Minister Antonio Tajani told domestic daily newspaper Corriere della Sera in an interview. "We want to work on a trade plan based on equality, we demand equal access for our products in [Chinese] markets. Our companies must compete on equal terms," the minister said said.

Taijani made the remark prior to his meeting with Chinese Commerce Minister Wang Wentao this week. His position highlighted division among the EU member states as a vote launched by the bloc may come next week. The EU aims to hold a vote on introducing definitive tariffs on Chinese-made EVs on September 25, Bloomberg reported, citing people familiar with the matter. The people added the date could still change.

The reported vote could pave the way for duties up to nearly 47% imposed in the EU. disclosed last month its draft decision to impose definitive countervailing duties on imports of BEVs from China to interested parties. The European Commission disclosed last month its draft decision to impose definitive countervailing duties on imports of battery electric vehicles (BEV) s from China to interested parties.The regulatory body proposed to add up to 36.7% to the current 10% duty faced by Chinese exporters, modestly lowered from the initial maximum planned duty of 37.6% set in the start of July. The proposed final duties will be subject to a vote by the EU's 27 states. They will be implemented unless a qualified majority of 15 EU members representing 65% of the EU population vote against.

Heads of top EU economies called on the European Union to push back the additional tariffs on Chinese EVs last week. Spanish Prime Minister Pedro Sánchez said last week the EU should reconsider its plan to impose additional tariffs on Chinese-made EVs ."I have to be blunt and frank with you that we need to reconsider — all of us, not only member states but also the Commission — our position towards this movement," Sanchez told reporters last Wednesday before concluding a four-day trip in China.

"We don't need another war, in this case a trade war," Sánchez said in Kunshan, China. "I think we need to build bridges between the European Union and China, and from Spain what we will do is to be constructive and to try to find a solution, a compromise, between China and the European Commission."

Sánchez became the first to demand a rethink to the impending trade measures. German Chancellor Olaf Scholz echoed his call. German government spokesman Steffen Hebestreit welcomed the Spanish move, saying “the direction of travel is one that we share.”

Norway joined Spain and Germany calling for the EU to drop its proposal for additional EV tariffs. No country should impose such EV tariffs, which would only hurt both sides in the end, Norwegian Prime Minister Jonas Gahr Store said in an interview with state broadcaster China Central Television (CCTV). The Prime Minister stressed that Norway does not produce cars and has not joined the EU's trade policy, adding that his government does not want to burden its consumers, who have the right to buy the cars they want.

Germany does not agree to impose tariffs on Chinese EVs, and will urge the European Commission to seek a proper solution with China to avoid trade conflicts “at all costs “ , German Vice Chancellor and Federal Minister for Economic Affairs and Climate Action Robert Habeck as he met with his Chinese counterpart Wang Wentao earlier this week.

Habeck said while Germany embraces competition with China, “it must be on fair terms.” He described the package solution proposed by the Chinese industry as an important step forward, laying a good foundation for the next round of EU-China consultations, and it is hopeful that the European Commission to a constructive response from the European Commission.