EU member states agree to impose tariffs on Chinese electric vehicles

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EU member states agreed to impose tariffs on imports of Chinese electric vehicles on Friday, marking the biggest trade dispute between the economic superpowers in a decade.

They backed a European Commission proposal for anti-subsidy tariffs of up to 35.3 per cent, on top of the existing 10 per cent, despite vocal opposition from Germany and Hungary.

According to two people briefed on the matter, 10 member states voted for the tariffs, five voted against and 12 abstained.

The EU tariffs will last for up to five years and range from 7.8 per cent for Tesla to 35.3 per cent for SAIC, which owns the MG brand.

China has already retaliated by threatening tariffs on EU brandy imports and opened investigations into pork and dairy products.

Since Brussels launched its investigation into the European EV market a year ago, Beijing has blasted Brussels for what it says is rising protectionism.

The commission has said its investigation was compliant with world trade rules and uncovered subsidies to carmakers and their suppliers. including cheap land and loans from Chinese banks.

China’s carmakers had offered to restrict sales and raise prices to avoid tariffs — concessions that were rejected by the EU. Brussels has said it would continue talks aimed at a negotiated settlement to curb the big rise in Chinese electric car imports.

This is a developing story.

Additional reporting by Guy Chazan in Berlin.