Employees work on the electric vehicle (EV) production line at the Zero Sports Car Factory in Jinhua, east China's Zhejiang Province, on September 18, 2024.
Berry Boy | AFP | Getty Images
The European Union voted on Friday to impose final tariffs on Chinese-made battery electric vehicles (BEVs).
“Today, the European Commission's proposal to impose clear countervailing duties on battery electric vehicles (BEVs) imported from China has received the necessary support from EU member states to adopt tariffs,” the EU said in a statement.
The EU first announced in June that it would impose higher tariffs on Chinese electric vehicle imports on the grounds that the vehicles “benefited significantly from unfair subsidies” and posed a “threat of economic harm” to European electric vehicle manufacturers.
As part of the EU's investigation into Chinese electric car production, tariffs on individual companies were also revealed, related to the extent of their cooperation and the information they provide to the EU. The EU investigation began last year.
The temporary tariffs were implemented from early July.
The European Commission subsequently revised the tariff plan in September based on “substantive comments on the temporary measures” from relevant parties.
A spokesman for China's Ministry of Commerce told reporters that Beijing still believed that the investigation into subsidies for China's electric vehicle industry had reached “preset conclusions”, adding that the EU was promoting unfair competition.
Reuters reported earlier this week that the E.U. willing to continue negotiations Even after tariffs are imposed.
divisions within the EU
The decision comes after months of debate and deliberation among EU member states, which expressed differing views on raising tariffs on imported Chinese-made electric vehicles.
While France has been a strong supporter of the EU and has previously pushed for the bloc to open an investigation into potential tariffs, Germany has argued against it, raising concerns about its consequences. Automakers in trouble themselves.
According to Reuters, Hungarian Foreign Minister Peter Szijjarto said on Thursday that Hungary would veto the European Commission's proposal for tariffs of up to 45%.
Potential retaliation from China has been a major concern for some EU member states, especially as China has launched anti-dumping investigations into EU exports of pork and brandy, and launched countervailing investigations into EU dairy products.
—CNBC’s Ryan Browne contributed to this article.
