EU to Vote on Tariffs for Chinese Electric Cars Next Week

The European Union is planning to vote on whether to impose tariffs of up to 45% on electric cars imported from China next Friday, October 4th, according to sources familiar with the matter.

On Saturday, September 28th, Bloomberg reported on the issue, citing informed sources, followed by Reuters and other media outlets. Sources said that EU member states have received a draft regulation of the proposed measure and added that the voting date may still be subject to change.

Reports suggest that last-minute negotiations with Beijing to find a solution to avoid the new tariffs have caused a slight delay in the voting process.

After an investigation by the European Commission, it was found that the Chinese authorities unfairly subsidize the electric car industry, necessitating the imposition of tariffs to prevent European manufacturers from being at a disadvantage. The European Commission proposed a 35.3% tariff on electric cars produced in China, in addition to the standard 10% import tariff for regular cars in the EU.

The final proposed tariffs will be decided by a vote of the 27 EU member states. Unless 15 EU member states representing 65% of the EU population oppose the tariffs, the final tariffs are expected to be implemented by the end of October.

China is the world’s largest producer of electric vehicles. However, Chinese-made electric cars and related vehicle software are facing increasing resistance globally.

Starting from September 27th, the United States has doubled tariffs on Chinese-made electric cars. Additionally, the US has imposed a 25% tariff on Chinese-made electric car batteries.

Earlier this week, the US Department of Commerce also proposed a ban on the use of Chinese software and hardware in connected vehicles on American roads, citing national security concerns. This move would effectively bar almost all Chinese cars from entering the US market. The software ban will take effect starting from 2027 models, while the hardware ban will start from 2030 models.

US Secretary of Commerce, Raymond, stated that vehicles installed with Chinese software could be used for surveillance and remote control, posing a threat to the privacy and security of the American people.