EU could vote on tariffs on Chinese electric cars on 3 October

Wednesday October 3 there could be a turning point on tariffs on Chinese cars which is important in Europe. According to Nikkei Asia, the European Union is expected to vote that day. There is still a lot of uncertainty about the confirmation of the tariffs because there is the possibility that a qualified majority (i.e. 15 member states representing 65% of the Union’s population) will oppose the definitive tariffs, which are expected to come into force in November 2024 .

Meanwhile, the European Commission and China are negotiating an agreement “price commitment” which would set a minimum price for Chinese electric vehicles in Europe to avoid them.

Countries for or against tariffs

Chinese Trade Minister Wang Wentao visited Europe earlier this month to lobby against tariffs. France, Italy and Spainwhich represent 40% of the EU population, initially strongly supported the duties, then Spain said it was willing to review the plan, while France – even after the elections – reiterated its yes to the duties and the Italy supports Europe.

The Germaniawhich depends heavily on the Chinese car market and may face retaliatory measures, is among the most skeptical countries and also faces strong internal tensions, given the tug-of-war between the Volkswagen Group (whose second largest shareholder is the state of Lower Saxony) and the unions for the possible closure of some factories.

German Vice Chancellor Robert Habeck, after meeting with Chinese Trade Minister Wang Wentao, reiterated Germany’s commitment to free trade and invited Chinese companies to invest in Europe, underlining the need to find a solution that satisfies both parties and avoids an escalation of trade tensions.

The hypothesis of flexible prices

The flexible pricing talks follow talks on September 19 between Chinese minister Wang Wentao and European Commission trade commissioner Valdis Dombrovskis. The introduction of a minimum price for Chinese electric vehicles it could be an alternative to tariffs, but the situation is still very uncertain.