LONDON (TDI): The European Union (EU) has voted to impose tariffs of up to 45% on electric vehicles (EVs) imported from China, a decision that is expected to escalate trade tensions with Beijing.
The European Commission, the EU’s executive branch, can now move forward with implementing the tariffs, which will be in effect for five years.
Ten member states supported the measure, while Germany and four others opposed it, and 12 countries chose to abstain.
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This decision reflects the EU’s ongoing efforts to reduce its dependency on China, with former European Central Bank President Mario Draghi recently warning that “China’s state-sponsored competition” poses a significant threat to the EU’s economic stability.
Last year, the EU conducted €739 billion (approximately $815 billion) in trade with China, highlighting the complexity of their economic relationship.
Negotiations between the EU and China are set to continue, as both sides seek an alternative to the tariffs.
Also Read More:China Seeks EU Tariffs Resolution
They are exploring the possibility of reaching an agreement on a mechanism to manage export prices and volumes instead of imposing duties.
