European Union (EU) votes on resolution to impose tariffs on Chinese electric vehicles

The European Union (EU) voted on Friday to adopt final tariffs on Chinese battery electric vehicles (BEVs).

“Today, the European Commission’s proposal to impose a final countervailing duty on imports of battery electric vehicles (BEVs) from China has received the support needed to adopt the tariff from EU member states,” the EU said in a statement.

The EU announced in June that it would raise tariffs on Chinese electric vehicle imports, saying they had “benefited greatly from unfair subsidies” and posed a “threat of economic harm” to European electric vehicle manufacturers.

Depending on the degree of cooperation with the investigation, the work of individual companies was also revealed. The provisional tariff went into effect in early July, but was revised in September based on ‘substantiated opinions on conservation measures’ from stakeholders.

The Chinese Chamber of Commerce in the EU said in a statement on Friday that it was “deeply disappointed by the results of this vote” and added that it was “very dissatisfied with the EU’s adoption of protectionist trade measures.”

The chamber also urged the EU to be “cautious” about final measures, delay their implementation and focus on finding a negotiated solution. The EU said Friday it was still looking at other solutions even if the tariffs were adopted.

The Chinese Chamber of Commerce in the EU reiterated its position that the EU’s investigation into Chinese electric vehicles is a “politically motivated and unjustified protectionist measure,” adding that tariff increases would affect not only Chinese companies but also international companies producing electric vehicles in China. He said it would have an impact.

German car manufacturers criticized the EU’s decision.

Mercedes-Benz called the tariffs a “mistake” and urged the European Commission to delay implementation, while BMW said the move was a “deadly signal” for the European auto industry, Reuters reported.

Embattled Volkswagen said the obligation was “the wrong approach and would not improve the competitiveness of the European car industry.”

Automakers urged the European Commission and the Chinese government to continue talks, saying, “The goal is to prevent countervailing tariffs and resulting trade conflicts.” Volkswagen said an alternative negotiated solution is still possible until the tariffs take effect later this month.

Volvo Cars, the Swedish automaker owned by China’s Geely Holdings, said in a statement: “We will continue our long-standing strategy of producing cars where we sell them and will make significant long-term investments in Europe.” He said. .

Meanwhile, French-Italian giant Stellantis said the industry was under pressure from CO2 emissions reduction plans and Chinese competition, noting that “policies that support current demand and ensure regulatory stability are more important than ever.” I did it.

European auto stocks were last up 1.42% at 12:19pm London time.

The decision follows months of discussions and deliberations among EU member states, which expressed varying opinions on tariff increases.

France backed the move after previously urging the EU to start negotiations, but Germany opposed it, raising concerns about the consequences for its struggling car manufacturers.

The possibility of Chinese retaliation has been a major concern for some EU member states. This is especially true since China has already launched an anti-dumping investigation into EU pork and brandy exports and an anti-subsidy investigation into EU dairy products.

On Friday, German Finance Minister Christian Lindner urged the European Commission not to start a trade war.

“Despite voting on potentially punitive tariffs on China, Ursula von der Leyen’s European Commission should not trigger a trade war,” he said in a post on social media platform X, according to a CNBC translation.

— CNBC’s Sam Meredith and Ryan Browne contributed to this article.