EU Set To Vote On Contested Major Tariffs For Chinese Electric Cars

BRUSSELS, Oct 4 (Bernama-dpa) -- European Union countries are expected to vote on Friday on contested additional tariffs for battery-powered electric vehicles imported from China, the German news agency (dpa) reported.

The European Commission had announced the extra tariffs of up to 35 per cent after an investigation accused Beijing of subsidising domestic electric car manufacturers and thus distorting the market in the EU.

The proposed tariffs, which could apply for five years in addition to the EU's standard 10 per cent import levy on cars, have since caused a stir in capitals and among automakers.

Germany, which is home to brands like Volkswagen, BMW and Mercedes, is wary of the potential implications.

The German government is set to vote against the proposal, dpa learned on Thursday.

Sources within the German Economy Ministry told dpa that Berlin's goal was fair competition, not a trade war.

The ministry's aim is a negotiated solution that safeguards both sides' interests, it suggested.

German automakers, who have invested in the Chinese market and have relied heavily on sales there, have generally opposed the tariffs out of concern that they could be hit by retaliatory action by the Chinese government.

Spanish Prime Minister Pedro Sánchez has called for a re-evaluation of the plans.

French President Emmanuel Macron, however, has expressed his support for punitive measures against Chinese e-cars. Italy has also voiced support for the measure.

The tariffs might be prevented from coming into force if at least 15 country delegates out of 27, who together represent 65 per cent of the EU's population, vote against them.

However, even if there is a majority in favour of the tariffs, they will not be imposed automatically from the beginning of November.

If Brussels reaches a solution with China at the negotiating table, the tariffs can be stopped by the commission at any time, regardless of how EU countries voted.

-- BERNAMA-dpa