EU Commission to move ahead with tariffs on Chinese-made EVs

Investing.com -- The European Commission has said that it has received enough support from its member states to press ahead with slapping up to 45% tariffs on Chinese-made electric vehicle imports.

The executive branch of the European Union chose to stick with its planned import duties despite deep division with the bloc's members, including a rejection of the proposal by leading economy and key car manufacturing center Germany.

According to several media sources, a crucial vote of EU members on Friday found that 10 supported the tariffs, five -- among them Germany -- were against, and 12 abstained. The tariffs would only have been blocked if 15 EU members, representing around 65% of the bloc's population, had voted against them.

Carmakers could face billions of dollars in extra costs to bring their vehicles into the EU due to the levies, which are set to take effect for five years starting in November.

Brussels has argued the higher tariffs are needed to combat what it perceives as unfair trade practices by China that could pose a "threat" to electric vehicle groups in Europe.

However, the Commission said it would continue to engage Beijing in negotiations, with Reuters reporting that one possible compromise could be set minimum sales prices.

In a statement on social media platform X on Friday, the China Chamber of Commerce to the EU said it had "deep disappointment" with the vote and is "strongly dissatisfied" with the bloc's "adoption of protectionist trade measures."

"We strongly encourage the EU to approach the final measures with caution, delay the implementation of these tariffs, and prioritize resolving disputes and trade tensions through consultations and dialogue," the CCCEU added.

Automotive companies in Germany, including Volkswagen (ETR:VOWG_p ), BMW (ETR:BMWG ) and Mercedes-Benz (OTC:MBGAF ), hit out at the EU Commission's decision and urged Brussels to negotiate a settlement with China, according to media reports. Meanwhile, France's PFA car association said it was favor of free trade as long as it was fair, Reuters reported.

(Reuters contributed reporting.)

Source: Investing.com