EU countries divided on Chinese EV tariffs in vote, Reuters reports

European Union governments split over the merits of EU tariffs on imports of Chinese-made electric vehicles in a non-binding but still influential vote, sources familiar with the vote said on Tuesday.

The European Commission, which oversees EU trade policy, has set temporary tariffs of up to 37.6% on electric vehicle imports from China in response to what it calls unfair subsidies, and has sought the views of EU member states in a so-called advisory vote.

Sources said 12 EU member states voted in favor of the tariffs, four voted against and 11 abstained.

The European Commission is expected to take this into consideration when deciding whether to impose explicit tariffs in the EU's most high-profile trade case to date.

If it does assert the duties at the end of the inquiry, they will be subject to a binding vote among EU member states unless a qualified majority of the 15 member states representing 65% of the EU's population vote against them. be enforced.

If the voting pattern for advisory voting is repeated, express obligations that normally apply for five years will come into effect.

However, the large number of abstentions reflects a wavering by many EU member states who are aware of the European Commission's argument that trade must be on a level playing field, but also aware of the risk of a trade war with China. Beijing has threatened massive retaliation.

German carmakers, which accounted for a third of their sales in China last year, have urged the EU to lower tariffs, not just for Chinese manufacturers such as BYD, Geely and SAIC, but also for Chinese-made cars from Western carmakers. .

In the vote, France, Italy and Spain supported the tariffs, while Germany, Finland and Sweden abstained, government sources said.

A German source said its abstention was in a spirit of “critical solidarity” with the European Commission. An embassy official said Finland doubted whether it was in the EU's interests, given that not all European carmakers supported the measures.

Swedish Trade Minister Johann Forssell said that dialogue between the European Commission and China to find a solution is very important.

The committee will continue its investigation for three months.

In one sign of compromise, the European Commission has said it may consider lowering tariffs BMW's Domestic electric mini car Volkswagen's Cupra Tavascan, two people familiar with the matter said.