The European Union is moving forward with imposing tariffs of up to 45% on electric vehicles (EVs) made in China, despite opposition from Germany, the EU’s largest economy, Reuters reports.
The European Commission justified the tariffs, which will be enforced for five years starting next month, as a response to unfair Chinese subsidies following a year-long investigation. The proposal received backing from 10 EU members, while five opposed and 12 abstained. This decision reflects divisions within the EU, with countries like France, Italy, and Poland supporting the move, while Germany opposes it due to concerns about trade relations with China.
The tariffs are expected to make Chinese EV imports more expensive, potentially benefiting European carmakers like Renault and Volkswagen, while also possibly encouraging Chinese companies to build production capacity within Europe.
China has criticized the tariffs as “unfair” and in violation of World Trade Organization rules. The EU’s decision has raised fears of a trade war over potential retaliatory actions from China, with China already launching investigations into EU imports of agricultural goods, including brandy, dairy, and pork.
