EU countries are divided over supporting additional tariffs on Chinese-built electric vehicles, underscoring Brussels’ challenge in garnering backing for its largest trade case yet as Beijing threatens broad retaliation.
Germany, whose automakers made a third of their sales in China last year, opposes the tariffs, according to a government source. In contrast, France is among the strongest proponents. A majority of countries, however, are still deliberating the pros and cons of the escalating trade dispute, according to an informal Reuters poll of EU governments.
An advisory vote on the issue will be held in the coming weeks, marking the first official test of support in this landmark case for the Commission. Notably, the EU initiated the probe without an industry complaint, a first for such a trade case.
The bloc is set to announce on Thursday provisional duties of up to 37.6% on Chinese brands such as BYD, Geely, and SAIC, as well as on China-made models of Tesla, BMW, and other Western automakers. In October, EU members will vote again if the Commission proposes multi-year tariffs at the end of its investigation. These tariffs could be blocked if a “qualified majority” of at least 15 countries representing 65% of the EU population votes against them.
France, Italy, and Spain, which together represent 40% of the EU population, have indicated support for the tariffs. “Europe must defend itself if our companies are harmed and do not compete on equal terms,” Spain’s economy ministry said. However, the Czech Republic, Greece, Ireland, and Poland are still debating the issue, according to official and government sources, while Belgium has a caretaker government and the Netherlands only recently formed a government.
Germany has emphasized the need for a negotiated solution with Beijing. German automakers argue that tariffs are counterproductive, with the negative effects outweighing any benefits. Opponents also say that increasing the cost of EVs for consumers undermines the EU’s goal of becoming carbon-neutral by 2050. Tesla has indicated it will raise prices in response to the tariffs.