Before making a final decision on new customs duties for Chinese electric cars, the European Commission consulted the 27 member states. A non-binding vote was held.
Brussels has set a provisional tax on electric cars made in China that enter Europe. Since July 5, 2024, manufacturers must pay new customs duties ranging from 27.4 to 47.6%. A consultative vote was recently held to give member states a voice in informing the future decision of the European Commission. However, the Union emerged more divided than ever.
The tax on Chinese electric cars divides Europe
The governments of the European Union show significant differences regarding the justification of the customs duties on Chinese electric cars. Germany, the leader of the automotive industry in Europe, abstained. In essence, the country is rather opposed to customs duties. However, this abstention should be interpreted as “an act of solidarity” with the European Commission, according to a source close to the matter.
BMW, Volkswagen, and Mercedes could face retaliation from Beijing. The major German manufacturers still make a third of their sales in the Chinese market. Conversely, France, Italy, and Spain have expressed support for these new customs duties. In total, 12 member states voted in favor of the tax, 4 voted against, and 11 abstained according to Reuters.
The high abstention reflects the hesitations of many countries. Among them are Finland and Sweden. The Commission plans to continue its investigation for another 3 months. At the end of the investigations, the institution will again request a vote from the 27 member states. If a majority of 15 member countries representing at least 65% of the Union’s population opposes it, Brussels will have to comply.