The proposal might be hindered if a qualified majority of the European Union’s 27 members oppose it. For a qualified majority, at least 15 EU members, representing 65% of the EU population, must support it.
Germany plans to abstain in the upcoming vote by European Union member states on Monday regarding provisional tariffs on electric vehicles (EVs) imported from China. This vote is the initial indication of support for the European Commission’s significant trade case. The proposed provisional tariffs, which could reach up to 37.6% on Chinese EVs, do not require the approval of the member states, but achieving final tariffs will need to overcome any opposition by a qualified majority of the EU’s 27 members.
Abstaining at this stage, Germany effectively supports the Commission as it continues discussions with Beijing on what the EU’s largest trade case to date is. The ongoing anti-subsidy investigation and the negotiations between the EU Commission and the Chinese government are reasons for Germany’s abstention, noted by sources who requested anonymity due to the confidentiality of the decision.
One source described Germany’s decision to abstain as an act of “critical solidarity” with the EU Commission. German automakers, which achieved a third of their sales last year in China, are against the tariffs, fearing retaliatory actions and a potential trade dispute with China, their second most important trading partner.
In contrast, France strongly supports the case, while Hungary has expressed disapproval. The stance of other members remains uncertain, marking the first official test of the Commission’s approach to tariffs. Notably, this trade case was initiated without a complaint from the industry, marking it as unprecedented.
When questioned about the abstention late on Friday, Chancellor Olaf Scholz expressed confidence that the EU executive would successfully negotiate an agreement with China on EVs, which he believes would benefit the European car industry. However, he did not confirm how Germany would vote. Scholz stated after a meeting with Japan’s premier that these vehicles are globally competitive and should not fear competition. He emphasized the importance of maintaining fair conditions for all parties involved.
This initial vote, which is confidential and conducted in writing, is non-binding. During the provisional phase, the Commission has the authority to impose duties while consulting EU members and considering their viewpoints.
A final vote will occur at the conclusion of the investigation, during which the Commission may propose definitive duties, typically enforced for five years.
The Commission argues that duties are necessary to counteract subsidized loans, land, raw materials, and other benefits provided to Chinese automakers, aiming to create a level playing field. This is in contrast to the United States’ proposed 100% tariff, which aims more directly at excluding Chinese car makers.
The proposal could be blocked if opposed by a qualified majority of the EU’s 27 members, which requires the support of at least 15 members representing 65% of the EU population.
