EU members set to back Chinese tariffs

Industry News | | MIC Customs Solutions |

The EU trade commissioner has stated that he expected EU member states to give their support to new tariffs targeting China.


Governments in the EU are likely to back Brussels' proposals to introduce higher tariffs on the import of electric vehicles from China later this year, the bloc's trade commissioner has said.

Speaking to the Financial Times, Valdis Dombrovskis stated he expects governments in the 27 EU countries to support the measures when they come to vote on the plans in October. If passed, duties of up to 37.6 percent could come into force as early as November.

“It’s clear that member states realize the need to protect the EU’s car industry because this risk of injury is there. [The] Chinese battery electric vehicle market share is growing very rapidly," the commissioner stated.

He added that “non-market policies and practices” imposed by Beijing have contributed to a €293 billion trade surplus in goods with the EU in 2023, creating an imbalance that needs to be addressed.

Dissenting votes from 15 countries representing 65 percent of the bloc’s population are required to block the tariffs. In an advisory poll in July, the FT noted only four members voted against the suggested tariffs, while 11 were in favor and nine abstained - including Germany, which has been among the most vocal critics within the EU of the duties.

Chinese automakers have already been reacting to the proposals by shifting production to the EU. However, Mr Dombrovskis warned that such efforts will only work if they meet rule of origin requirements, which specify that a minimum percentage of a vehicle's value must be created in the EU.

He also told the news provider that while he is open to a "mutually acceptable solution" to avoid the tariffs, it would have to involve significant changes to China's industrial policy, which currently includes large subsidies to businesses and the prioritization of domestic goods over imports.

While several rounds of talks have taken place between the two sides, the FT reported that these have been technical negotiations focused largely on methodology rather than ways to resolve the dispute.