2:34 pm, July 15, 2024
Germany is set to abstain in today’s vote by European Union member states regarding proposed tariffs on imports of China-built electric vehicles, according to a report by Reuters.
Ahead of the midnight deadline for all 27 EU members to voice their opinions on the matter, Germany has said it would abstain because the anti-subsidy investigation continues and negotiations between the EU Commission and the Chinese government are ongoing.
Both Italy and Spain are backing the proposed duties of up to 37.6% on EVs imported from China, while France has also said it is behind the move.
Although the EU doesn’t require the backing of member states at this early stage, it is consulting the 27 members so it can take their positions into account.
Following this round, a final vote at the end of the EU’s investigation into Chinese-built EVs, will see the commission decide on the provision of definitive duties, typically applying for five years.
German automakers sell around a third of the cars they manufacture every year in China, and some of the biggest names, including heads at the Volkswagen Group, have been vocal about how “detrimental” the extra duties could be to the European car market.
The likes of BMW, Mercedes-Benz and other German premium vehicle makers fear it could spark a trade war with China, where the government imposes similar tariffs or blocks the sale of European-made vehicles entirely.
The EU Commission, which initiated an ex-officio anti-subsidy investigation on imports of China-made battery electric vehicles in October of last year, is suggesting additional duties are required to counter cheap loans, land and raw materials and other subsidies provided by the Chinese government to domestic manufacturers as they sought to expand their new energy vehicle (NEV) industry.
According to Reuters, the EU’s final proposal could be blocked if a qualified majority of the European Union’s 27 members is opposed. A qualified majority needs 15 EU members representing 65% of the EU population to be in favour.
