EU tariff hike on Chinese electric cars divides union

On October 4, 2024, the European Union officially voted to increase tariff rates on electric cars imported from China. However, not all countries were in agreement on this issue.

The issue of tariffs on electric vehicles from China significantly divided European politicians. The voting results clearly show that not all member states are unified in their stance.

Bulgaria, Denmark, Estonia, France, Ireland, Italy, Lithuania, Latvia, the Netherlands, and Poland voted to introduce higher, punitive tariffs. What about the rest? Twelve countries abstained from voting, but the list of those opposing it is surprising. These are Malta, Slovakia, Slovenia, Hungary, and Germany. Nonetheless, the decision was passed.

This means that tariffs on Chinese electric cars imported to Europe will increase from 10% to as much as 45%. The rates will vary depending on the company. However, it is certain that they will be higher than before.

The main and official reason for introducing higher tariffs is that the local authorities are subsidizing the production and export of Chinese electric cars, which violates European competition rules.

As an automotive powerhouse, it might seem that Germany should be most interested in minimizing the influx of cars from China. However, the situation is more complex, as German brands sell more cars in China than in Germany itself, and their representatives fear a trade war with the Asian giant.