EU approves additional tariffs on Chinese electric cars amid trade war concerns

EU countries have approved additional tariffs of up to 35.3% on Chinese-made electric cars, despite opposition from Germany and concerns about triggering a trade war with Beijing. The European Commission found that China’s state subsidies to its auto manufacturers were unfair, leading to the imposition of these tariffs, which will take effect for five years starting in late October.

The decision saw 10 member states, including France and Italy, supporting the tariffs, while Germany, Hungary, and others opposed them. China’s commerce ministry criticized the tariffs as “protectionist” and warned of retaliation while urging dialogue to resolve the issue.

The new duties aim to protect the EU’s automotive industry from heavily subsidized Chinese competition, but Germany, home to auto giants like Volkswagen and BMW, fears the move could harm its interests and escalate trade tensions. Talks between China and the EU are expected to continue, as both sides seek to avoid further economic conflict.