FX.co ★ EU states vote on Chinese EV tariffs

The European Union is back in the news. Most EU countries have voted to impose a 35% tariff on electric vehicles imported from China, despite objections from Germany.

Out of the 27 member states, 10 nations backed tariffs, 5 voted against, and 12 abstained. This decision follows an investigation that revealed China was unfairly subsidizing its EV industry, an accusation that Beijing strongly denies. In retaliation, Chinese officials threatened to impose their own tariffs on European products such as dairy, cognac, pork, and vehicles.

Germany stood apart in the debate, opposing the tariffs. Earlier, BMW and other German automakers urged the government to vote against the high tariffs on China-made electric vehicles, but their appeals were ultimately ignored.

Despite this, the EU moved forward with the 35% tariff on Chinese EVs, sparking outrage in Beijing. The Chinese government accused the EU of engaging in protectionist practices and violating WTO regulations.

Following the EU’s vote, China’s Commerce Ministry released a strongly-worded statement, condemning the bloc for "trade protectionism."

Officials in Beijing stressed that the bloc’s probe into Chinese EVs was a "politically motivated and unjustified protectionist measure." They see it as a serious violation of WTO rules and an "unfair and baseless" decision.