EU Approves Major Tariffs on Chinese Electric Vehicle Imports to Protect Industry

The European Union has approved significant tariffs on electric vehicle (EV) imports from China, following a majority vote among member states. The new tariffs, set to rise from the current 10% to as high as 45% over the next five years, aim to shield Europe’s car industry from what EU lawmakers argue are unfair subsidies given to Chinese carmakers by the Chinese government.

The decision has sparked concerns about potential price increases for EV buyers in Europe, as well as fears of a trade war between Brussels and Beijing. China has strongly condemned the tariffs, labeling them as protectionist measures.

The vote, held on Friday, follows an EU investigation that led to import duties being imposed on major Chinese EV manufacturers such as SAIC, BYD, and Geely. These tariffs were calculated based on the level of state aid each company is believed to have received.

While the move has caused division among EU member states, it was ultimately supported by countries like France, Italy, the Netherlands, and Poland, which believe the tariffs are necessary to protect European manufacturers. Germany, whose economy is closely tied to exports to China, opposed the decision, and many other countries abstained from the vote.

Critics, including German automaker Volkswagen, argue that the tariffs are the “wrong approach” and could have unintended consequences for the European automotive sector.