EU escalates tariffs on Chinese electric cars amid division

On October 4, 2024, the European Union officially voted to increase tariff rates on electric cars imported from China. However, not all countries agreed on this issue.

The issue of tariffs on electric vehicles from China significantly divided European politicians. The voting results clearly show that not all member states speak with one voice.

Countries that voted for introducing higher, punitive tariffs included Bulgaria, Denmark, Estonia, France, Ireland, Italy, Lithuania, Latvia, the Netherlands, and Poland. What about the rest? As many as 12 countries abstained from voting, but most surprising is the list of those who opposed it. These are Malta, Slovakia, Slovenia, Hungary, and... Germany. Nonetheless, the decision was passed.

This means that tariffs on Chinese electric cars imported to Europe will increase from 10 to as much as 45 percent. The rates will vary depending on the company. However, they will undoubtedly be higher than before.

The main and official reason for introducing higher tariffs is that the local authorities are subsidizing the production and export of Chinese electric cars, which violates the competition rules in Europe.

It might seem that Germany, as an automotive powerhouse, should be most interested in minimizing the influx of cars from China. However, the situation is more complex, as German brands sell more cars in China than in Germany itself, and their representatives fear a trade war with the Asian giant.