China Considers Raising Tariffs on European Petrol-Powered Cars

The trade tensions between China and the European Union are heating up as the EU Member States prepare to vote on new duties on imports of electric cars made in China. The EU Commission has proposed raising the duties to 46.3% on charges of industrial dumping, sparking a potential trade war between the two economic powerhouses.

In response, Beijing is not sitting idly by. The Chinese Ministry of Commerce has announced plans to potentially raise tariffs on large European petrol-powered cars, with countries like Italy and Germany being the most heavily impacted. Luxury and premium brands such as Ferrari, Lamborghini, Maserati, Porsche, BMW, and Mercedes could face higher tariffs if the proposal is confirmed.

The European Commission is currently collecting comments from Chinese manufacturers affected by the new tariffs, with a final proposal expected to be presented to the Member States by the end of August. The Member States will then have the opportunity to approve or reject the proposal by expressing their opinion in a binding manner and by qualified majority.

The outcome of the vote is crucial, as the duties could remain in force for five years, with the possibility of extension upon request. The decision will have far-reaching implications for the automotive industry and could set the stage for further trade disputes between China and the EU.

As the deadline for the vote approaches, all eyes are on the EU Member States to see how they will respond to China’s proposed tariffs. Stay tuned for updates on this developing trade war and its impact on the global economy.