FX168 Financial News (North America) - The European Union plans to vote on September 25th to decide whether to increase tariffs on imported electric cars from China. According to insider information, this vote will determine whether the final tariff will be imposed on Chinese electric cars.
Unless 15 member states of the European Union (representing 65% of the EU population) vote against it, this vote will pave the way for tariffs to be imposed starting in November. However, anonymous sources have indicated that the voting date may be adjusted.
The European Union has proposed tariffs of 36.3%, 19.3%, and 17% on SAIC Motor Corporation, Volvo parent company Geely, and BYD respectively, while current Chinese exporters have already paid a tariff of 10%. Bloomberg reports that the final tariff rate is expected to be slightly lower. Tesla will also face an additional tariff of less than 8%, plus the base tariff.
European Commission President Ursula von der Leyen initiated an investigation into electric cars last year, stating that Chinese companies were dumping products into the European market through unfair state subsidies. In response, China launched anti-dumping investigations into European exports of brandy, dairy products, and pork.
China and Europe have held multiple rounds of talks in an attempt to find alternative solutions, but so far no consensus has been reached. Brussels has stated that any solution must be based on the rules of the World Trade Organization and address the harmful subsidy issue identified in the EU investigation.
Next week, Chinese Commerce Minister Wang Wentao will visit Europe to continue discussions on the tariff issue with European Trade Commissioner Valdis Dombrovskis.
China has accused the European Union of adopting protectionist measures and threatening retaliatory tariffs on multiple industries. At the same time, China is seeking to resolve all disputes through reaching agreements and has questioned the EU's measures at the World Trade Organization. According to sources, the EU believes that China's investigation is retaliatory and will defend its own interests in the three WTO investigations.
Earlier this week, Spanish Prime Minister Pedro Sánchez called on the European Union to reconsider its plans to impose tariffs during his visit to China, which has attracted widespread attention. The German automobile industry is also concerned about these measures by the European Union and urges the EU to find alternative solutions to avoid escalating trade friction.
(Source: Bloomberg)
In order to avoid tit-for-tat trade restrictions, both Germany and Spain have implemented massive fiscal stimulus measures. German automakers such as Volkswagen and BMW may be the hardest hit in this dispute, as they sold a total of 4.6 million autos in 2022.
As the second largest auto manufacturer in the European Union, Spain is actively seeking Chinese investment to promote the development of its domestic electric vehicle industry - this is also one of the reasons for Sanchez's visit to China this week.