Europe will impose tariffs on Chinese electric cars, although Germany and Spain have tried to avoid it

It is definitive: As expected, EU countries have said yes to the definitive tariffs on Chinese electric cars that are imported to Europe from the People’s Republic. They are similar to the provisional ones that have been applied since July with a maximum rate of 45.3%.

The protectionist proposal has had sufficient support from member states, with the exception of, among others, Germany: the largest European economic power and main automobile producer. Spain has abstained.

This is how the new tariffs remain, which will be applied from November at the latest

With 10 votes in favor, five against and 12 abstentionsthe tariffs on zero emissions from China have received the green light. From the European Commission (EC) They detail that the proposal “has obtained the necessary support from EU Member States.”

For it not to go ahead, a qualified majority of 15 countries, representing 65% of the EU population, had to vote against it. France, Greece, Italy and Poland, which host 39% of it, have voted yes at these import rates, according to sources consulted by Reuters. The percentage needed to block the measure was raised to prevent it from falling.

Although with nuances, the community government details that “In parallel, the EU and China continue to work hard to explore an alternative solution”. That is, it will continue negotiating with the People’s Republic to avoid the feared trade war that the Chinese government itself has threatened to start if these rates were finally imposed.

A possible solution would be to facilitate the factories of Chinese firms in Europe: Chery or BYD are already raising them.

MG electric cars, with the maximum tariff. The new tariffs will begin to be imposed upon publication in the Official Gazette of a Commission Implementing Regulation. What will be done “no later than October 30, 2024.”

That is to say, from November at the latest, these new rates will begin to be applied, which are set according to the manufacturer or automobile group (the 10% that was taxed before the provisional rates are added):

On the other hand, brands that the EU considers cooperated in the investigationa 20.7% (30.7%). This group includes Leapmotor (Stellantis partner and manufactures in Europe) or Xpeng, in addition to the subsidiaries of BMW or Volkswagen that manufacture some models in China.

The rest will be imposed the maximum, which is finally set at a 35.3% (45.3%) and being somewhat lower than the provisional rates. It is the same that applies to SAIC, to which MG belongsone of the companies that are having the best penetration in Europe, although not only in pure electric vehicles.

This measure seeks to protect the European industry from fierce Chinese competition: Brussels considers People’s Republic cars have artificially low prices thanks to the financial support of the executive. And with the new 100% tariffs now applied by North AmericaEurope becomes the main market target for China outside its borders.

The big question is how these tariffs will affect consumers, since can mean zero emissions more expensive if they decide to affect it in the price of the models they sell here. In any case, it does not affect all cars, only electric ones: hybrids with or without a plug are available.

“A fatal sign for the European automobile industry”. Germany It has been one of the few countries that has voted against this imposition, which does not have the approval of the German brands. German manufacturers are among the most affected by these rates: because they have factories in China, but above all because of the cars that they export to the Asian country, and that generate significant profits for brands like Mercedes or Porsche.

According to ReutersOliver Zipse, CEO of bmwhas described the vote as “a fatal sign for the European automobile industry” and has urged Europe to quickly reach an agreement with Beijing to avoid a trade war. Volkswagen already pointed out at the time that these rates were “the wrong approach.”

On the other hand, Beijing has already announced possible retaliation that directly affected German brands. In China they shuffle raise tariffs to 25% on large displacement gasoline cars imported from Europe. Market largely dominated by premium and luxury German firms. This rate is now 15%.

Another of the countries that voted against was Hungary: Viktor Orban has spoken of an “economic cold war” with China.

Spain abstained, but is closer to no. Although Spain has not voted againstYes, it has been against these new rates and has asked Europe to maintain its denials with China to avoid “a large-scale confrontation.”

In this sense, Pedro Sánchez pointed out last month that the measure had to be reconsidered and “building bridges between the European Union and China” fearing another trade war. “From Spain we will be constructive and we will try to find a compromise between China and the European Commission,” said the President of the Government.

Our country is another of those the more he could suffer possible reprisals from the People’s Republicwhich has an investigation open antidumping to meat imports. Spain is the main exporter of pork to the Asian country, receiving 21%. In 2023, China imported a total of 560,488 tons of pork from Spain, worth more than 1,223 million euros.