EU Approves Tariffs on Chinese Electric Vehicles Amid Trade Tensions

The EU has approved tariffs of up to 35% on Chinese electric vehicles, with effective implementation in November. While France and Italy support the move, Germany opposes it to avoid a trade war, prompting concerns over potential economic fallout.

The European Union has approved additional tariffs on electric vehicles manufactured in China, effective from November. The taxes can reach up to 35% on top of the existing 10% rate. This decision has been celebrated by France and Italy, though Germany opposed it, fearing it could spark a trade war with China. Germany’s Finance Minister, Christian Lindner, called for a negotiated solution with Beijing. Meanwhile, China’s government has initiated anti-dumping investigations against European imports in response, potentially targeting pork, dairy, and wine-based spirits, with France likely to face the most consequences due to its cognac industry. German automakers like BMW, Mercedes, and Volkswagen Group could suffer as China threatens to impose tariffs on their thermal vehicles if retaliation occurs.

The new tariffs are part of ongoing tensions between the EU and China regarding trade practices, particularly in the electric vehicle sector. The EU aims to protect its local automotive industry from competitive pricing from Chinese manufacturers. The discussions have been divided, with some EU countries supporting the tariffs while others, like Germany and Hungary, oppose them. The potential for a trade war arises amid China’s increasing scrutiny of European goods, which poses risks for EU exporters.

The approval of tariffs on Chinese electric vehicles signals a shift in EU trade policy, highlighting divisions among member states. As tensions rise, both Europe and China may face economic repercussions from their actions. German manufacturers stand to be hit hardest if the anticipated trade conflicts escalate.

Original Source: www.auto-infos.fr