Despite no from Berlin
EU can impose tariffs on electric cars from China
October 4, 2024, 11:05 a.m
After a word of power from the Chancellor, Germany votes against new tariffs on electric cars from China, but cannot prevail: the EU states are clearing the way for the project. The EU Commission can now decide.
The EU can impose additional tariffs on electric cars from China. A sufficient majority of EU states have not spoken out against the project, as several EU diplomats confirmed. This means that the EU Commission can decide to introduce taxes of up to 35.3 percent. The Commission says it has the necessary support from member states to impose the planned punitive tariffs on electric cars from China.
Germany was unable to assert its position in the vote. The most populous EU country voted against the tariffs in Brussels. In order to prevent this, a majority of the EU states, which together make up at least 65 percent of the EU’s total population, would have had to speak out against the project. According to diplomats, in addition to Germany, only four other member states voted against it.
According to information from diplomatic circles, in the end ten EU states voted for the measure and twelve abstained. Only five spoke out openly against the tariffs. According to the information, the opponents of the taxes represent a good 20 percent of the EU population.
However, the federal government initially disagreed until Chancellor Olaf Scholz made a decision shortly before the vote. In the traffic light coalition, the FDP-led ministries of finance and transport pushed for a German no vote in Brussels. Scholz was also critical of possible punitive tariffs. The Green-led economic and foreign ministries had advocated abstaining from the vote in order to continue looking for a negotiated solution with China.
The European Commission announced the additional tariffs after an investigation accused Beijing of promoting electric cars with subsidies that distort the EU market. It is up to the Commission whether the import duties will come into force at the beginning of November. But if a solution is reached with China at the negotiating table in time, the tariffs can be stopped. Cars from China have so far played almost no role on the German market.
Because of the numerous abstentions, there was no majority this Friday that was explicitly in favor of the tariff surcharges. The 27 EU countries were therefore unable to issue a joint statement.