EU states to vote on EV tariffs on 25 September
The new voting date was first reported by Bloomberg. And according to people familiar with the matter, it is still not set in stone. Until now, the word in Brussels has always been that the EU member states should vote on the additional tariffs on electric cars produced in China “by the end of October.”
If the vote passes, tariffs on China-made EVs will apply from November.
The EU started imposing provisional tariffs in July following an investigation into Chinese subsidies for Chinese EV makers. The investigation revealed that Chinese electric car manufacturers have unacceptable competitive advantages thanks to high subsidies from the government in Beijing and can thus offer their electric cars at a lower price in Europe than domestic manufacturers. For this reason, the special duties were not levied across the board but on a manufacturer-specific basis. These have since been slightly adjusted.
However, not all member states are in favour of the move. Spanish Prime Minister Pedro Sanchez and German Chancellor Olaf Scholz recently spoke out against it on a trip to China. Spain is looking to attract investments from China to help its EV industry grow. German carmakers stand to lose a lot if tariffs come into force, as Beijing could enforce tariffs on cars from Europe in return.
Meanwhile, the US has finalised its special tariffs on key Chinese products – including EVs. They will come into force on 27 September. As reported, the tariffs on electric vehicles from China will be quadrupled from 25 per cent to 100 per cent. The duty rate for lithium-ion batteries for use in electric cars or individual battery components will increase from 7.5 to 25 per cent. Further additional reductions also apply to certain raw materials and materials used for electric mobility applications. Canada is also introducing a 100 per cent surcharge on electric cars from China on 1 October.
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