ESC urges the European Commission to foster balanced cooperation with China on electric vehicle trade

ESC hopes that the European Commission will pursue a balanced approach in imposing tariffs on Chinese Electric Vehicles, which could reach up to 35.3% for major Chinese automakers. The recent vote among EU member states did not yield a unified agreement. While ten member states, including France, Italy, and the Netherlands, supported the proposed tariffs, twelve abstained, and five opposed the action.

The Commission’s actions come at a crucial time for EU automakers, who are grappling with high energy prices and sluggish consumer demand. These challenges could jeopardize 2.5 million direct and 10.3 million indirect jobs across the bloc, threatening the long-term viability of the European automotive sector.

Effective on 31 October, the new tariffs will vary based on each manufacturer’s level of cooperation with the Commission’s investigation, which uncovered significant price disparities between Chinese and EU firms. While the additional duties will compound the existing 10% tariff, some Chinese producers may face overall tariffs exceeding 45%.

ESC acknowledges the complexities of international trade and supports measures that can create a balanced environment for both continents. By implementing these tariffs, the Commission is attempting to address longstanding concerns about the competitive landscape for European manufacturers, while remaining aware that any imposition could result in retaliation—a scenario that must be avoided.

ESC believes that establishing a cooperative dialogue on trade issues with Chinese authorities is crucial to seeking sustainable solutions that comply with World Trade Organization rules and minimising potential retaliatory actions that could disrupt trade relations.