Members states in the European Union are set to vote on the European Commission’s tariffs on China-made electric vehicles (EVs) on October 4, 2024. The date may still change, depending on discussions between Europe and China.
The October 4 vote would decide wether the Commission’s tariffs on China-made EV imports will be imposed for the next 5 years in the EU. If a qualified majority votes to impose the tariffs, they will take effect by November 2024.
According to the most recent information, the Commission plans to impose tariffs rate as high as 35%, significantly lower than the initial rate of around 38%. The duties will be applied on top of the EU’s current 10% rate on car imports.
Around 65% of EU member states must vote to oppose the tariffs to stop the Commission from imposing them. So far, Spain and Germany have spoken out against imposing the tariffs.
In August, nearly all EU member states were expected to vote in favor of implementing the tariffs. However, recent conversations with China’s Ministry of Commerce have resulted in some members changing their potential vote.
“I am not a fan of countervailing duties because this will likely lead to countermeasures and involve us in a tariff dispute, perhaps a tariff war, with China,” German Economy Minister Robert Habeck said on Monday. “I am working to find a political solution that will not drive us into a tariff war with China.”
China has responded to the Commission’s tariffs with investigations into certain industries, like pork and dairy. China’s investigations may result in tariffs on European imports, impacting countries like Spain and Germany, which rely on exports to China.
The European Union and China are open to discussing the tariffs even after the October 4 vote.
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