France, Greece, Italy, and Poland Vote on EV Tariffs

By Philip Blenkinsop

BRUSSELS (Reuters) – France, Greece, Italy, and Poland are set to vote on Friday to impose tariffs of up to 45% on imports of electric vehicles (EVs) made in China, a move likely to escalate trade tensions with Beijing.

The European Commission is carrying out an anti-subsidy investigation into Chinese-made EVs and has sent its proposal for final tariffs to the EU’s 27 member states ahead of the impending vote.

According to 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 are expected to vote in favor, aligning with their earlier stance in July, although Greece did not participate then. Collectively, these countries represent 39% of the EU population.

While the Commission has the option to submit a revised proposal, Commission President Ursula von der Leyen emphasized the need for the EU industry to shield itself against a possible influx of cheap Chinese EV imports benefiting from state subsidies.

The EU auto industry, particularly German carmakers, has generally opposed tariffs, as nearly a third of their sales come from China. French President Emmanuel Macron voiced his support for the tariffs, labeling Chinese subsidies as “unbearable” and advocating for protecting the level playing field across all industrial sectors.

The Czech industry and trade ministry has commented on the severity of the Commission’s findings regarding “China’s unfair practices” but withheld its voting decision. The position of Spain remains uncertain after Prime Minister Pedro Sanchez urged reconsideration of the EU’s stance during a visit to China in September.

German Chancellor Olaf Scholz has suggested that negotiations with China should persist, but Germany may abstain again due to differing opinions within its coalition government.

The EU is open to negotiating alternatives to tariffs with China, potentially involving minimum import prices based on metrics such as range, battery performance, and vehicle type, or a commitment to investment in the EU with transitional quotas.

Proposed tariffs range from 7.8% for Tesla to 35.3% for SAIC and other companies considered uncooperative in the EU investigation, in addition to the standard 10% EU import duty on cars.