Vote backs Chinese EV tariffs

The European Union (EU) has voted to proceed with tariffs of up to 45 per cent on China-made electric vehicles (EVs) despite Germany, the bloc’s largest economy and a major car producer, rejecting the plans.

The extra duties are set to come into force from next month for five years and come after a year-long anti-subsidy investigation by the European Commission.

It is expected the tariffs will cost carmakers billions of extra dollars to bring cars into the EU, reports Reuters.

The October 4 vote resulted in 10 EU members backing tariffs, five voting against, and 12 abstentions.

The commission says the result delivered “the necessary support” to adopt the tariffs but it will continue talks with China to find an alternative solution, which may be to set minimum sales prices.

Oliver Zipse, pictured, BMW chief executive, describes the vote as “a fatal signal for the European automotive industry” and Geely Holding reacted with “deep disappointment” to the commission’s decision, reports Reuters.

The EU tariffs will range from 7.8 per cent for Tesla to 35.3 per cent for SAIC and other companies deemed not to have co-operated with the EU investigation. These duties are on top of the EU’s standard 10 per cent import duty for cars.