EU governments were divided over tariffs on Chinese e-vehicles in a non-binding vote at the European Commission, Reuters reported, citing sources familiar with the matter. A dozen EU members voted in support of the tariffs, four voted against, and 11 abstained, the source said. The EU Commission is expected to consider this vote when deciding whether to proceed with definitive duties in what is the EU's most prominent trade case to date. The Commission, if it proposes duties at the conclusion of its investigation, will submit them to a binding vote among EU members. They would be implemented unless a qualified majority of 15 member countries, representing 65% of the EU population, vote against them.

Who did what? France, Italy, and Spain supported the tariffs, while Germany, FInland, and Sweden abstained. Germany’s abstention was in “critical solidarity” with the Commission, according to one source, while Finland had doubts about whether it was in the EU’s interests to impose the tariffs given that not all European car manufacturers favored the measures. German automakers — which made a third of their sales in China in 2023 — have urged the EU to drop the tariffs, which not only impact Chinese producers, but also China-built cars by Western automakers.

REMEMBER- The European Commission has told automakers it will begin imposing additional tariffs on Chinese EVs from July to protect its local automotive industry. On top of the preexisting 10%, the duties will stand at 17.4% for BYD, 20% for Geely, and 38.1% for SAIC. Companies such as Tesla and BMW that produce vehicles in China, but were “cooperative” during the investigation, will be hit with a 21% tariff. The tariffs follow similar protectionist moves by the US, which quadrupled duties on Chinese EVs last month to 100%.

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