Political turmoil in the EU as the battle over electric vehicle tariffs divides member states

Written by Mike Shedlock via MishTalk.com,

Unlike US automakers, Germany’s counterpart did not want tariffs on China’s EV. Germany lost the vote in the European Council…

EU votes on Chinese electric vehicle tariffs

This story may seem counterintuitive, but Germany does not want the EU to put tariffs on electric vehicles from China.

This is because Germany is still dependent on its internal combustion engines for exports, and China will undoubtedly fight back.

TheDriven reports EU votes on tariffs on China’s electric vehicles despite protests from Germany and others.

Euronews reported that just under half (12) of the member states abstained, with 10 votes in favor and five votes against, including Germany, Hungary, Malta, Slovenia and Slovakia.

Despite the vote, EU-China negotiations can continue until October 30 with the possibility of finding an agreement to prevent tariffs. China attacked the investigation from the start, labeling it a “barely protectionist act”, denying the existence of any subsidies, Euronews wrote.

Germany has tried to block the proposal to protect its auto industry, which relied on China for a third of its sales last year, from any Chinese retaliation. To block the proposal, Germany would have had to get the support of 14 other member states for a so-called qualified majority, representing 65% of the EU’s population.

Germany is currently not on track to meet its goal of having 15 million electric cars on its roads by 2030, despite being the world’s second-largest producer of electric cars in 2023.

Brussels breaks the deadlock

EuroNews reports Brussels breaks deadlock after EU countries fail to agree tariffs on Chinese electric vehicles

European Union countries failed to agree on higher tariffs on electric vehicles made in China in a closely watched vote that ended with too many abstentions, forcing the European Commission to break the political deadlock and push its proposal over the finish line. .

The result of Friday’s vote was not publicly available, although several diplomats told Euronews how each member state stood:

• 10 were for: Bulgaria, Denmark, Estonia, France, Ireland, Italy, Lithuania, Latvia, Netherlands and Poland. (45.99% of the EU population)
• 12 abstained: Belgium, Czech Republic, Greece, Spain, Croatia, Cyprus, Luxembourg, Austria, Portugal, Romania, Sweden and Finland. (31.36%)
• Five were against: Germany, Hungary, Malta, Slovenia and Slovakia. (22.65%)

The Commission “should not start a trade war. We need a negotiated solution,” German Finance Minister Christian Lindner said in reaction to the vote.

The dispute over Chinese electric vehicles marked a rare moment in which the (European Council) president (Ursula von der Leyen), originally from Germany, defended a position that her home country strongly opposes.

The political fiasco could reverberate until the country holds federal elections in September 2025.

Only 45.99 percent of the EU was in favor of the tariffs, but the European Council was able to override the tariffs over Germany’s objection.

Tariffs are one of the areas where changes do not have to be unanimous. But 45.99 percent is quite the stick.

Of those who voted for vs against, it was 45.99% to 22.65% a 67% margin to pass.

EU tariffs

• Tesla: 7.8%
• BYD: 17%
• Geely: 18.8%
• SAIC: 35.3%
• Other Chinese electric vehicle manufacturers that cooperated in the investigation but were not individually sampled: 20.7%
• Other non-cooperating electric vehicle manufacturers in China: 35.3%

These are on top of existing rates.

Like in the US

This is the same as in the US. Those in charge not only mandate electric vehicles, they set policies to ensure the cars are as expensive as possible.

Big electric cars don’t make sense even with $40,000 in tax credits

This morning I wrote it down Big electric cars don’t make sense even with $40,000 in tax credits

Thanks to Biden’s regulations, truckers are driving older engines longer because they can’t afford newer diesel models. The result is more pollution.

Joe Biden’s stance on tariffs

The tweet above was from June 11, 2019.

On May 14, 2024, Biden changed his tune.

On June 13, I noted The EU taxes Chinese vehicles that its own companies make

Eurointelligence: The profit margins that permeated German industry will be gone. The new cars will have fewer components and fewer German-made components. This is why the decline of the machine is a decline of industry and economy—to the extent that countries depend on it. Germany is one of them.

On October 5, I wrote down Buy American supplies cost $125,000 per job created

“Buy America” ​​sounds great. But it’s expensive and about to rise steeply.

One wonders how idiotic tariff policy can get. The competition is fierce between Biden, the EU, Harris and Trump.

By Zerohedge.com

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