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German automakers represent almost a third of their automobile sales are quite vocal against the Chinese EV tariffs

The European Union government conducts a pivotal vote to impose up to 45% tariffs on imports of Chinese electric vehicles in the bloc’s highest-profile trade case.

The decision on whether tariffs should be imposed on electric vehicles can lead to retaliation risks from Beijing.

EU Commission Can Impose Tariffs with 15 EU Countries Majority

According to the EU rules, the commission can impose tariffs for the next five years until it receives a majority of 15 EU countries, representing 65% of the EU's population vote against the plan.

In the absence of a qualified majority, the EU executive has the power to adopt the tariffs. The countries of the EU can submit an amended proposal if they want to secure more support.

France, Italy, Greece and Poland to Vote in Tariff Favour

Reuters reported that France, Greece, Italy, and Poland would vote in favor of the tariff, which is enough to avert a blocking majority against tariffs.

German automakers represent almost a third of their automobile sales and are quite vocal against the Chinese EV tariffs.

The economy minister in Spain said in a letter to European Commission Vice President Valdis Dombrovskis that the EU should keep the negotiations open beyond the vote, instead of imposing tariffs. This will help to strike a deal on EV prices as well as battery relocation production.

Beijing Launched Probes  into Imports of EU Brandy, Dairy, and Pork Products

Some EU members seem worried regarding Beijing’s response to retaliation. Earlier this year, Beijing introduced its probes into imports of EU brandy, dairy, and pork products.

The Commission indicates that China's extra manufacturing ability for electric vehicles, which is required to be sold abroad, is equivalent to double the volume of the European market.

Considering that there are 100% tariffs in the United States and Canada, the most apparent destination for these electric vehicles is Europe.

The EU executive has indicated its readiness to keep discussing a different approach to tariffs with China and might reconsider a deal on pricing.

The deal will include a minimum import price and a quantity limit, after previously declining similar proposals from Chinese companies.