Italy Endorses Tariffs on Chinese EVs Ahead of EU Vote

By Pune Media On Sep 17, 2024 39

Italy has expressed support for the EU’s proposed tariffs on electric vehicles (EVs) imported from China.

Reuters reported on Monday (September 16) that Italian Foreign Minister Antonio Tajani has confirmed the country’s stance in a recent interview, emphasizing that these measures are essential for protecting the European automotive sector from the competitive pressures created by subsidized Chinese EV production.

“We support the duties that the EU Commission proposes, to protect the competitiveness of our companies,” he said.

The proposed tariffs, which are expected to be decided upon in the coming months, are part of a broader EU effort to address concerns over the impact of Chinese subsidies on global markets.

Chinese EVs, often priced lower than their European counterparts, benefit from increased state support. This has led to growing concerns among EU member states about the potential threat to local manufacturers.

Italy, a key player in the automotive industry, is particularly affected, as it is home to major automotive brands.

Taajani’s comments precede an upcoming meeting with Chinese Commerce Minister Wang Wentao, who will visit Rome as the tariff vote looms. The EU is moving closer to implementing tariffs of up to 35.3 percent on Chinese-made EVs. These tariffs would be in addition to the standard 10 percent car import duty that is already in place.

The European Commission is expected to make a final decision after further consultations with member states.

Italy’s backing of the EU’s proposed tariffs on Chinese EVs comes amid broader global tensions over trade practices. Both the US and Canada have already implemented tariffs on Chinese-made EVs.

The US raised 100 percent tariffs on EVs from China this past May, also targeting strategic goods such as solar cells, semiconductors and lithium-ion batteries, which are vital to EV production.

Canada followed suit in August, imposing 100 percent tariffs on Chinese EVs, as well as a 25 percent surcharge on Chinese steel and aluminum products. These are set to take effect in October.

The measures are aimed at countering what these countries view as China’s unfair trade practices.

The EU’s response has been similarly robust. Earlier this year, the EU introduced Chinese EV tariffs ranging from 17.4 percent to 37.6 percent; those were in addition to its standard 10 percent import duty.

China has responded to Canada’s tariffs by filing a formal complaint with the World Trade Organization (WTO), arguing that these trade restrictions constitute protectionism and violate international trade rules.

The complaint marks China’s third major WTO case this year, following similar disputes with the US and the EU over EVs, as well as other high-tech exports.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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