Spain calls for EU to compromise with China over EV import tariffs

Spains calls for the European Commission to compromise with China over its electric vehicle (EV) import tariffs. 

Spain’s Prime Minister Pedro Sánchez recently met with China’s President Xi Jinping. After the PM’s meeting with President Jinping, Sánchez told journalists that the Commission and EU member states should reconsider the repercussions of imposing tariffs on EV imports from China.

During a non-binding consultation in July, Spain voted in favor of the tariffs. It was expected to maintain its vote in the upcoming vote in November. However, Prime Minister Sánchez’s new stance on the subject might change Spain’s vote.

“I have to be blunt and frank with you that we need to reconsider all of us, not only members states but also the Commission, our position towards this. As I said before, we don’t need another war, in this case, a trade war,” said the Prime Minister of Spain after meeting with President Xi Jinping of China. 

Tesla’s EU tariffs for China-made EV imports expected to get lower

Prime Minister Sánchez is likely referring to China’s response to the Commission’s EV import tariffs. The Commission proposed the EV tariffs after an investigation concluded that the Chinese government provided subsidies across its local EV production supply chain, resulting in artificially low-priced electric vehicles. European automakers can’t compete with China’s low-priced vehicles.

China has continuously spoken against the Commission’s tariffs. The Chinese government has initiated investigations on EU imports, including pork, dairy, and alcohol products. According to Spain’s pork producers’ association Interporc, the EU country’s pork products account for 21$ of China’s total pork imports. Spain exported €1.2  billion worth of pork products to China in 2023. 

“I think that we need to build bridges between the European Union and China and from Spain. What we’ll do is to be constructive, and to try to find a solution, a compromise between China and the European Commission. 

In July, the Commission imposed provisional tariffs on EV imports from China. The maximum rate went up as high as 38%. A few automakers received individual tariff rates, including China’s big three automakers: BYD, SAIC, and Geely. 

In August, the Commission reduced its tariff rates, the highest going up to around 37.6%. The tariffs are to be placed on top of the current 10% import duty. 

The Commission also announced individual tariff rates for Tesla and Volkswagen’s Cupra Tavascan. The organization is expected to lower tariff rates for non-Chinese automakers before the European member states vote on the tariffs and cement its implementation in November. 

El Gobierno de España quiere consolidar nuestras relaciones comerciales y de inversión con China.

Sin embargo, es innegable que estas relaciones deben reequilibrarse.

El fuerte déficit comercial de España y la UE con China nos preocupa, y así se lo he trasladado a las… pic.twitter.com/4oVM5Imqvc

— Pedro Sánchez (@sanchezcastejon) September 11, 2024

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