Brussels will stick to plans to impose heavy tariffs on Chinese-made electric vehicles, the EU executive said on Friday, even after the bloc’s leading economy, Germany, rejected them and exposed a rift over the biggest trade row with Beijing in ten years. The proposed tariffs on Chinese-built electric vehicles of up to 45% would cost carmakers billions of extra dollars to bring cars into the bloc and will be imposed for five years from next month.
The Commission, which oversees the bloc’s trade policy, has said it will clamp down on what it sees as unfair Chinese subsidies after a year-long anti-subsidy investigation, but also said on Friday it would continue talks with Beijing.
A possible compromise could be to set minimum sales prices. In a crucial vote on Friday, 10 EU members supported tariffs and five voted against, with 12 abstentions, EU sources said. It would have required opposition from a qualified majority of 15 EU members, representing 65% of the EU population, to block the proposal. It was reported on Wednesday that the measure was likely to be adopted, with France, Italy and Poland planning to vote in favor.
