EU's plan for tariffs on Chinese EVs bad for ties, green goals-media

The European Commission's intention to impose tariffs on Chinese-made electric vehicles (EVs) is poised to jeopardize decades of cooperation between China and the EU, as well as hinder climate change objectives.

Despite Germany, the EU's largest economy, opposing these tariffs, the Commission announced on October 4 that it would proceed with significant duties, marking the most substantial trade dispute with Beijing in a decade, Caliber.Az reports per foreign media.

Chinese media agency criticized the move as indicative of a "deep-seated protectionist impulse," arguing that these tariffs could ignite a trade conflict detrimental to both China-EU relations and Europe's green transition ambitions. The agency urged the EU to abandon protectionist tariffs in favour of ongoing negotiations.

Chinese EV imports have surged in Europe, raising alarm among local manufacturers who fear substantial losses from competitively priced Chinese vehicles. Proposed tariffs could reach as high as 45 per cent, potentially costing carmakers billions over the next five years, with implementation set for next month.

The European Commission, responsible for the bloc's trade policies, justified the tariffs as a response to what it considers unfair Chinese subsidies following a year-long investigation. However, the Commission indicated it would continue discussions with Beijing, suggesting that a compromise, such as setting minimum sales prices, might be possible.

China's Commerce Ministry has strongly opposed the tariffs, labelling them "unfair, non-compliant, and unreasonable," and has initiated a challenge at the World Trade Organization. In a perceived retaliatory action, Beijing has also launched investigations into imports of EU products, including brandy, dairy, and pork. The US currently imposes a 100 per cent duty on imported Chinese EVs.