Italy and Spain are supporting European Union tariffs on imports of electric vehicles built in China, according to government sources, as a Monday midnight deadline approaches for all 27 EU members to declare their stance on the issue.
The vote is non-binding, but it could impact the final decision of the European Commission, which manages the bloc's trade policy. The Commission has imposed provisional duties of up to 37.6 percent on EVs imported from China, escalating tensions with Beijing. The EU executive is conducting an 'advisory' vote to gather EU governments' opinions, which the Commission will consider when deciding whether to implement definitive duties, marking the EU's most prominent trade case to date.
Government sources revealed on Monday that Italy has voted in favor, and Spain is expected to do the same in their written submissions. Poland's development ministry indicated that Warsaw's position is still under discussion among its ministries. Germany is poised to abstain, according to sources on Friday. Greece had not yet taken a position as of Saturday.
A decade ago, the EU executive refrained from imposing tariffs on Chinese solar panels after it became evident that a significant number of EU members opposed them, leading to the collapse of EU manufacturing. The Commission will continue its investigation and decide whether to propose definitive duties, which would typically be in effect for five years.
If the Commission advocates for tariffs, they will be subject to a binding vote among EU members, and could be vetoed if a qualified majority of 15 member countries, representing 65 percent of the EU population, vote against them.