New EU tariffs on Chinese EVs a "huge blow" for the European economy - Orbán
Orbán said "Germany and European industry can no longer convince the Commission to be reasonable.
But then, who can?
The is set to impose tariffs on Chinese EVs - a huge blow for the European economy and for the automotive industry in . Germany and European industry can no longer convince the Commission to be reasonable. But then, who can? @EU_Commission
— Orbán (Viktor) October 5, 2024
The European Commission announced last Friday (4 October) that despite opposition from five countries, including Hungary and Germany, the European Union will impose additional duties of 17-35.3% on electric cars imported from China.
In parallel, the EU and China continue to work hard to explore an alternative solution that would have to be fully compatible with the regulations of the World Trade Organisation (WTO), "adequate in addressing the injurious subsidization established by the Commission's investigation, monitorable and enforceable," the EC added.
The EU executive argued that
that state subsidies for Chinese electric cars give Chinese companies an unfair advantage, threatening EU manufacturers with economic damage.
Hungary's Foreign Minister Péter Szijjártó said already on Thursday that Hungary would not vote in favour of the proposal.
The vote
According to Reuters, this is how countries voted:
- For: Italy, France, Poland, the Netherlands, Ireland, Latvia, Lithuania, Estonia, Bulgaria, Denmark.
- Against: Germany, Hungary, Malta, Slovenia, Slovakia.
- Abstained: Belgium, Croatia, Czech Republic, Greece, Spain, Cyprus.
Who can pay how much?
The proposed duties range widely, depending on whether the company is cooperating or not with the European Commission's investigation. So far, Tesla is expected to pay 7.8% and China's SAIC 35.3%.
The list looks like this:
- Tesla (Shanghai): 7.8%
- BYD: 17%
- Geely: 18.8%
- Other companies that cooperated according to the Commission: 20.7% (Aiways, Anhui Jianghuai, BMW Brilliance, Chery, China FAW, Chongqing Changan, Dongfeng, Great Wall, Leapmotor, Nanjing Golden Dragon Bus, NIO, XPeng, Volkswagen)
- SAIC: 35.3%
- All other companies: 35.3%.
Reactions
BMW CEO Oliver Zipse
Today's vote is a fatal signal for the European automotive industry. What is needed now is a quick settlement between the EU Commission and China to prevent a trade conflict from which no one gains.
The fact that Germany voted against the tariffs is an important signal and increases the chances for a negotiated settlement.
Volkswagen
We stand by our position that the planned tariffs are the wrong approach and would not improve the competitiveness of the European automotive industry.
We appeal to the EU Commission and the Chinese government to constructively continue the ongoing negotiations for a political solution.
The joint aim must be to prevent any protective tariffs and thus avoid a trade conflict.
Mercedes
We are convinced that punitive tariffs will worsen the competitiveness of an industry in the long term,
a spokeswoman said on Friday, adding that the measure could have far-reaching consequences.
The Stuttgart-based car manufacturer instead advocates for a negotiated solution with China, arguing that this is in the mutual interest of both parties.
We are convinced that such a solution is possible,
she noted further. However, the development of such a solution will require time, so the implementation of the measures must be postponed.
Stellantis
As a global company, we support free and fair competition. Our industry is under the pressure of ambitious CO2 reduction plans and the Chinese global commercial offensive.
During this time of transition, policies supporting the demand and ensuring stability of the rules are more important than ever.
Geely Holding
Geely Holding expresses great disappointment in the Commission's decision. The decision [...] is not constructive and may potentially hinder EU-China economic and trade relations, ultimately harming European companies and consumer interests.
Volkswagen's Seat (which makes the Tavascan, all-electric SUV, in China)
SEAT S.A. is actively working with the VW Group, to minimise the potential consequences of this resolution for the CUPRA Tavascan.
The company will do everything possible to prevent these additional duties from affecting the price of the CUPRA Tavascan, as part of its commitment to customers and partners.
As first proof of this commitment, the price of the car will remain unchanged for all deliveries in 2024.
German car lobby VDA President Hildegard Müller
The proposed tariffs would not only further increase the risk of a mutual trade conflict, but would also make vehicles considerably more expensive for consumers. The potential damage that could be caused by countervailing duties is therefore greater than the potential benefits of the instrument.
Increasingly sealing off the market is not an option for the European - and in particular the German - automotive industry.
Cover photo: Alexandros Michailidis
