The European Union is considering imposing significant tariffs on Chinese electric vehicles, ranging from 17% to 36.3%. The move aims to protect European manufacturers from plant closures and layoffs caused by competition with subsidized Chinese EVs.
A vote on the tariffs will take place on September 25, but the decision to overturn them faces substantial resistance. German Chancellor Olaf Scholz and Spanish Prime Minister Pedro Sánchez have criticized the tariffs, while Economy Minister Robert Habeck appears more understanding.
Germany abstained from a preliminary vote due to coalition disagreements. Meanwhile, China is seeking a negotiated solution and is employing a mix of incentives and threats towards EU nations.
China's Commerce Minister Wang Wentao is scheduled to visit Europe for discussions with EU trade chief Valdis Dombrovskis. China is also leveraging economic deals, like a $1 billion hydrogen plant investment in Spain, to sway opinions.
The stakes are high, with China's exports to the EU exceeding $280 billion last year, and the country needing at least 15 EU members to oppose the tariffs. Tesla has raised prices for its China-produced Model 3 in Germany, despite reduced EU tariffs, leading to criticism and a drop in sales.
The US is also set to increase tariffs on Chinese EVs and related products to 100% by September 27, citing harmful Chinese policies. As the trade dispute intensifies, the EU remains divided, with some members feeling the pressure of potential Chinese retaliation more than others.
The outcome of the upcoming negotiations could significantly impact the global electric vehicle market.
