EU tariffs on Chinese e‑cars: A continent divided

On 4 October 2024, the European Union officially voted to increase tariff rates on electric cars imported from China. However, not all countries were in agreement on this issue.

The issue of tariffs on electric vehicles from China significantly divided European politicians. The voting results clearly show that not all member states speak with one voice.

Bulgaria, Denmark, Estonia, France, Ireland, Italy, Lithuania, Latvia, the Netherlands, and Poland voted for the introduction of higher, punitive tariffs. What about the rest? As many as 12 countries abstained from voting, but most surprising is the list of those who opposed it. These countries are Malta, Slovakia, Slovenia, Hungary, and Germany. Nonetheless, the decision was passed.

This means that tariffs on Chinese electric cars imported to Europe will increase from 10 to as much as 45 per cent. The rates will vary depending on the company, but they will certainly be higher than before.

The main and official reason for introducing higher tariffs is that the local authorities are subsidising the production and export of Chinese electric cars, which violates European competition rules.

It might seem that Germany, as an automotive powerhouse, should be most interested in minimising the influx of cars from China. However, the situation is more complex, as German brands sell more cars in China than in Germany itself, and their representatives fear a trade war with the Asian giant.