Enough EU Members Reported to Favor Chinese EV Tariffs Despite German Callin...

TMTPost -- The European Union member states including France remain at odds with Germany, the top economy and major car producer of the bloc, over extra tariffs on Chinese-made electric vehicles (EVs) as a key vote among members looms.

Credit：Xinhua News Agency

France, Greece, Italy and Poland will vote on Friday in favor of tariffs of additional on imports of EVs made in China, enough to push through a total of up 45% tariffs to hit China-based EV makers, Reuters reported, citing officials and sources in those countries Wednesday..

The European Commission said on July 4 it imposed provisional countervailing duties of up to 37.6%, on top of the ordinary BEV import duty of 10%, on imports of battery electric vehicles (BEVs) from China. The regulatory body proposed to add up to 36.7% to the current 10% duty faced by Chinese exporters. If a qualified majority of 15 EU members representing 65% of the EU population votes in favor of the final regulation, the tariffs could become law by October 30 and remain in effect for five years, with the option extensions upon review.

Four EU members including France, Greece, Italy and Poland that will vote in favour the proposed tariffs represent 39% of the EU population, the Reuters report noted. It said support from these countries is a significant boost for Brussels and it remains unclear how Germany, will vote.

German carmakers which made a third of their sales last year in China, have expressed their opposition to the tariffs. They worry about retaliation measures and fear a trade conflict with the country's second most important trading partner.

A make-or-break vote by the EU members to make extra EV tariffs permanent for five years is reported to be held on Friday. Ahead of the critical vote, the German government reiterated its stance to caution consequences of elevated EV tariffs. German Chancellor Olaf Scholz said Wednesday he expects negotiations with China to settle a dispute over the EU's threatened punitive tariffs on EV imports from China.

"Of course we have to protect our economy from unfair trade practices," Scholz said at a conference organized by the BGA foreign trade association in Berlin."However, our reaction as the EU must not lead to us damaging ourselves. That is why the negotiations with China on electric vehicles must continue."

The jurisdiction for settling trade disputes must function again, then there would be less need for customs disputes, Scholz added. China should renounce the special treatment it enjoys as a developing country.

Germany's finance minister, Christian Lindner, said Wednesday the government must oppose the tariffs. "A trade war with China would do us more harm than good for a key European industry and a crucial sector in Germany," the minister said.

Three German auto giants urged Berline to vote against the tariffs the same day.

"Additional tariffs harm globally active companies in this country and could provoke a trade dispute from which no one gains," BMW CEO Oliver Zipse said at a statement Wednesday. Mercedes CEO Ola Kallenius said: "The EU should seek a negotiated solution with China instead of imposing tariffs." Volkswagen said the tariffs do not improve the competitiveness of the auto industry. "The proposed tariffs are the wrong approach," a Volkswagen spokesperson said.