The EU has approved increased tariffs on Chinese electric vehicles, reaching up to 35%. Germany opposed the move, fearing a trade war, while France and Italy supported it. The decision may escalate tensions and provoke retaliatory measures from China, impacting European imports.
On Friday, EU member states approved additional tariffs on Chinese-made electric vehicles (EVs), with potential rates reaching 35%, alongside the existing 10% tariff. Germany opposed this measure, but France, Italy, and Poland supported it. Christian Lindner, Germany’s finance minister, warned against igniting a “trade war” with China, advocating for a “negotiated solution” instead. Twelve EU countries abstained from voting, likely to maintain trade relations with China. Following the implementation of these tariffs in November, discussions may become more complicated for potential reductions. In retaliation for the tariffs, China has initiated anti-dumping inquiries against European imports such as pork and wine, which could particularly affect France. The German automobile industry faces challenges ahead, as China has threatened to impose tariffs on European internal combustion engine vehicles, impacting major German manufacturers like BMW and Volkswagen.
The EU’s decision to impose additional tariffs on Chinese electric vehicles stems from ongoing tensions over trade practices and competition in the automotive sector. The measures are seen as efforts by France and Italy to protect their automotive industries against what they perceive as unfair competition from Chinese manufacturers. In contrast, Germany, with significant automotive exports to China, is concerned about potential retaliatory measures affecting its major car manufacturers.
The EU’s approval of higher tariffs on Chinese electric vehicles represents a significant shift in trade policy, primarily driven by France and Italy at the expense of German interests. As tensions rise, the potential for retaliatory actions from China may complicate the situation further, putting pressure on the EU automotive market and trade relations.
Original Source: www.auto-infos.fr
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