EU countries set to greenlight tariffs on Chinese electric vehicles
It’s EV Day in Brussels as member states are expected to confirm tariffs on imports of Chinese electric cars, heightening a spat with its largest trading partner.
But researchers estimate the move will only boost sales of EU-made electric vehicles if the bloc sticks to strict emissions targets, writes Andy Bounds.
Context: Diplomats from the EU’s 27 member states vote this morning on a European Commission proposal for anti-subsidy tariffs of up to 35.3 per cent, on top of the existing 10 per cent tariffs. Discussions on the tariffs have been controversial, but to block them, 15 countries representing at least 65 per cent of the EU population would have to vote against.
Commission officials are confident of success. Germany has led the charge against the tariffs, saying they would rebound on its own manufacturers who sell many models in China.
German finance minister Christian Lindner has said Berlin must vote against the tariffs, but it’s unlikely the opposition, joined by Hungary, can muster enough support. Italy and France are in favour, and Spain is expected to abstain, which in effect counts as a yes vote.
Governments hope the tariffs, which will last up to five years, will give the EU industry breathing space to sell its own, more expensive cars — currently struggling to compete with China’s cheaper offerings.
Transport & Environment, an NGO, has forecast that this will only be effective if the EU sticks to limits for reducing carbon emissions next year. Many rightwing politicians and carmakers have lobbied to delay lower thresholds for average car emissions, which should force them to sell more EVs.
According to the NGO’s study published today, EVs manufactured in China should capture a quarter of the market this year, but that could decrease to 20 per cent in 2025 and 18 per cent in 2026 under the tariffs.
But if the EU delays the 2025 emissions targets, Chinese-made EVs could grow to 27 per cent of the market next year as EU producers focus on higher-profit sales of cars with combustion engines.
“Higher EV tariffs are right but only in tandem with the car CO₂ targets. They are part of a coherent industrial policy to boost electric car production in Europe,” said Julia Poliscanova, senior director of Transport & Environment.
“The EU risks having the worst of both worlds if it delays the 2025 CO₂ targets while limiting the affordable models imported from China.”