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EU support is enough to impose Chinese EV tariffs, sources say
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EU support is enough to impose Chinese EV tariffs, sources say
Oct 2, 2024 10:58 PM

BRUSSELS, Oct 2 (Reuters) - France, Greece, Italy and

Poland will vote on Friday for tariffs of up to 45% on imports

of electric vehicles (EVs) made in China, officials and sources

said, enough to get the European Union proposal passed in a move

likely to increase trade tensions with Beijing.

The European Commission, which is conducting an anti-subsidy

investigation into EVs made in China, has sent its proposal for

final tariffs to the EU's 27 member states ahead of a vote

expected on Friday.

Under EU rules, the Commission can impose final or

"definitive" tariffs for the next five years unless a qualified

majority of 15 EU countries representing 65% of the EU's

population votes against the plan.

France, Greece, Italy and Poland will vote in favour,

officials and sources of those countries said. Together, they

represent 39% of the EU population.

The Commission can also submit a new, amended proposal if it

chooses.

The EU executive has said it is willing to continue

negotiating an alternative to tariffs with China and could

re-examine a price undertaking - involving a minimum import

price and typically a volume cap - having previously rejected

those offered by Chinese companies.

One option under negotiation is minimum import prices

calculated using criteria such as the range, battery performance

and length of the electric vehicle, along with whether it is

two- or four-wheel drive, a source familiar with the matter

said.

An alternative is a commitment to investment in the EU, with

quotas for a transitional period.

The tariffs range from 7.8% for Tesla to 35.3% for

SAIC and other companies deemed not to have

cooperated with the EU investigation. These tariffs are on top

of the EU's standard 10% import duty for cars.

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