Tariffs on Chinese EVs: EU could vote on 3 October
Nikkei Asia predicts that the date of the vote will be crucial. In the meantime, there is talk of a "minimum price".
Wednesday 3 October could mark a turning point on the issue of tariffs on Chinese cars in Europe. According to Nikkei Asia, the European Union is expected to vote that day. Uncertainty remains over whether the tariffs will be confirmed, as it is possible that a qualified majority (i.e. 15 Member States representing 65% of the EU's population) will oppose the final tariffs, which are due to come into force in November 2024.
In the meantime, the European Commission and China are negotiating a "price commitment" agreement that would set a minimum price for Chinese electric vehicles in Europe, precisely to avoid them.
Countries for or against tariffs
Chinese Trade Minister Wang Wentao visited Europe earlier this month to lobby against tariffs. France, Italy and Spain, which account for 40% of the EU's population, initially strongly supported tariffs, but Spain agreed to review its plan, while France, even after the elections, reiterated its rejection of tariffs and Italy its support for Europe.
Germany, which is heavily dependent on the Chinese car market and could be subject to retaliatory measures, is one of the most sceptical countries and is also facing major internal tensions, given the tug-of-war between the Volkswagen group (whose second largest shareholder is the state of Lower Saxony) and the unions over the possible closure of certain plants.
Following his meeting with Chinese Trade Minister Wang Wentao, German Vice-Chancellor Robert Habeck reiterated Germany's commitment to free trade and invited Chinese companies to invest in Europe, stressing the need to find a solution that satisfies both parties and avoids an escalation of trade tensions.
The flexible tariff hypothesis
The discussions on flexible pricing follow talks on 19 September between the Chinese minister, Wang Wentao, and the European Commission's trade commissioner, Valdis Dombrovskis. The introduction of a minimum price for Chinese electric vehicles could be an alternative to tariffs, but the situation is still very uncertain.
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