European Union member states on Friday formally voted to approve the European Commission's proposal to impose definitive countervailing tariffs of up to 45% on imports of battery electric vehicles manufactured in China. The landmark measure establishes import duties for a five-year period aimed at leveling the competitive playing field.
The vote revealed significant geopolitical divisions within the 27-nation bloc. Ten countries, including France, Italy, and Poland, voted in favor of the tariffs, while five nations, led by Germany and Hungary, voted against. Twelve member states abstained, meaning opponents failed to assemble the qualified majority needed to block the Commission's plan.
Decisive Vote Passes Countervailing Duties Despite Continental Divisions
The tariffs come on top of the EU's standard 10% car import duty and vary by manufacturer based on the level of state subsidies identified during a year-long investigation. Duties range from 7.8% for Tesla vehicles built in Shanghai to 35.3% for state-owned SAIC Motor, with BYD facing 17% and Geely facing 18.8%.
German automakers, including Volkswagen, BMW, and Mercedes-Benz, lobbied heavily against the tariffs, warning of devastating Chinese retaliation against their lucrative export markets and domestic assembly plants in China. Conversely, French and Italian manufacturers argued that inaction would permanently hollow out Europe's green industrial base.
“Our anti-subsidy duties are calibrated, proportionate, and strictly compliant with WTO rules to defend fair competition across the European single market while we remain open to negotiated alternatives.” — European Commission Directorate-General for Trade
Impact on Automotive Manufacturing and Potential Chinese Retaliation
Beijing strongly condemned the decision as protectionist, hinting at retaliatory investigations into European brandy, dairy, and pork imports as well as high-displacement combustion vehicles. However, both Brussels and Beijing confirmed that technical negotiations will continue to explore alternative solutions, such as price floor undertakings.
The regulation is scheduled to take effect by early November following publication in the EU Official Journal. Analysts expect the higher duties to slow Chinese EV market share growth in Europe and incentivize Chinese manufacturers to accelerate factory construction within the continent.
Frequently Asked Questions
What is the maximum tariff rate approved by the EU on Chinese EVs?
Including the standard 10% import duty, total tariffs will reach up to 45.3% on specific automakers such as SAIC.
Which EU countries voted against the tariffs?
Germany, Hungary, Malta, Slovenia, and Slovakia voted against the implementation of definitive countervailing duties.
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