Votes to impose tariffs on Chinese electric vehicles

The European Union on Friday voted to adopt definitive tariffs on China-made battery electric vehicles (BEVs).

“Today, the European Commission’s proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from EU Member States for the adoption of tariffs,” the EU said in a statement.

The EU first announced that it would slap higher tariffs on Chinese electric vehicle imports in June, on the grounds that they benefited “heavily from unfair subsidies” and posed a “threat of economic injury” to electric vehicle producers in Europe.

Duties were also disclosed for individual companies, depending on the extent of their cooperation with the probe. Provisional duties were put in place from early July, but were revised in September based on “substantiated comments on the provisional measures” from interested parties. In a statement out Friday, the China Chamber of Commerce to the EU expressed “deep disappointment with this voting outcome,” adding that it is “strongly dissatisfied with the EU’s adoption of protectionist trade measures.”

The chamber also called on the EU to be “cautious” about final measures, to delay their implementation and to focus on finding solutions through negotiations. The EU had said Friday it was still looking for other solutions, even as the tariffs are adopted. The Chinese Chamber of Commerce to the EU further reiterated its stance that the the bloc’s probe into Chinese EVs was “politically motivated and unjustified protectionist measure,” saying that higher duties would impact Chinese companies as well as international businesses producing EVs in China.

German automakers criticized the EU’s decision.

Mercedes Benz called the tariffs a “mistake” and urged the European Commission to delay their implementation, while BMW said the move marked a “fatal sign” for Europe’s auto industry, Reuters reported. – CNBC Africa