EU may vote on whether to impose tariffs on Chinese electric vehicles this year

The European Union’s long-promised tariffs on Chinese-made electric vehicles are likely to start in November, about six weeks after the bloc voted on Sept. 25 to approve them.

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China has been dealing with the potential impact of additional tariffs since the European Commission launched an investigation into domestically produced electric vehicles last year. Europe has proposed significantly higher tariffs for all applicable brands, but the extent of the tariff increase depends on how well each brand cooperates with the investigation.

Read: EU cuts tariffs on Tesla, Geely again, but China hopes to resolve dispute through negotiations

Sources believe the EU will hold a vote later this month on whether to impose final tariffs. If the vote passes, the tariffs will take effect in November. The only factor that could delay the process is if a qualified majority votes against the tariffs, which would require at least 15 member states to vote against, representing 65% of the EU population.

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Chinese and EU officials have held several meetings this month to try to explore alternatives to tariffs, but have made little progress, Auto News reported. The EU argues that a solution needs to be based on World Trade Organization rules and address subsidies for Chinese electric vehicles. Chinese Commerce Minister Wang Wentao is set to visit Europe next week for talks with EU Trade Commissioner Valdis Dombrovskis.

The EU has made several revisions to the proposed tariffs in recent weeks. The EU recently reduced the rate on Tesla from 9% to 7.8%, compared to the initial rate of 20.8% imposed on Tesla. This is because Tesla does not receive as much aid from the Chinese government as some other automakers, but it does receive discounted batteries.

Geely’s rate was also reduced from 19.9% ​​to 18.8%. The EU also reduced tariffs on SAIC (MG’s parent company) from 36.6% to 35.3%. SAIC was imposed the highest rate for not fully cooperating with the investigation. All of these rates are higher than the current 10% tariff on imported cars.

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