EU to approve tariffs on Chinese EVs, latest rumor suggests

The EU is expected to cast a final vote on October 4 on imposing tariffs on Chinese EVs. After months of supposed negotiations and back-and-forth with the Chinese authorities, that also lead to a reduction in the amounts, the expectations are that the move will be approved by the majority.

There has been some pushback by German automakers, more specifically VW, BMW, Mercedes-Benz and Audi, urging the German government to vote against the proposed import tariffs. They are concerned about Beijing hitting back and starting a trade war. Mercedes, BMW and Volkswagen have China as their biggest market, so if sales plummet in that region they will face a hard time replacing the lost revenue.

But even without the German vote, the European Commission might get the needed support. France, Italy, Poland and Greece are believed to vote in favor. Combined, they make up 39% of the EU population and for the vote to pass, it needs 65%.

The German government struggles to make an internal decision and will likely abstain from voting, while Spain, although initially in favor of the tariffs, is expected to change its stance. The Czech government is also on the fence. Its official statement is that it takes into account the recent probe from the European Commission, highlighting potential anti-free market practices by the Chinese EV industry.

In any case, some other options should be explored because many critics believe those tariffs will ultimately hurt the consumer and won't solve the underlying issue with European carmakers' inability to compete in the EV market.

For instance, the EU and China can agree on an import cap. China needs to export about 3 million EVs annually, around twice the size of the whole EU EV market, so agreeing on a cap might work without ballooning prices. Another option is to introduce a minimum price, depending on the vehicle type.

The EU won't be the first to impose tariffs on Chinese-made EVs. Recently the US, Canada, Turkiye and Brazil have added extra import taxes.

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