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European Union governments have given a divided view on the merits of EU tariffs on imports of China-built electric vehicles (EVs) in a non-binding but still influential vote, sources with knowledge of the vote said on Tuesday.
The European Commission, which oversees the bloc's trade policy, has set provisional duties of up to 37.6% on EVs imported from China and has canvassed EU member views in a so-called advisory vote.
A dozen EU members voted in support of the tariffs, four voted against and 11 abstained, the sources said.
France, Italy and Spain voted in favour, while Germany, Finland and Sweden abstained, government sources said.
The Commission is expected to take this into account when deciding whether to follow up with definitive duties in what is the EU's highest profile trade case yet.
Swedish trade minister Johan Forssell said that dialogue between the Commission and China to find a solution would be very important. Beijing has threatened wide-ranging retaliation.
The Commission will continue its investigation for another three months and determine whether to propose definitive duties that would typically apply for five years.
If it does push for tariffs, they will come up for a binding vote among the EU members and would be blocked if a qualified majority of 15 member countries representing 65% of the EU population vote against.
In one sign of compromise, the European Commission has signalled that it may consider a lower tariff for BMW's China-made electric Mini and Volkswagen's Cupra Tavascan, two sources with knowledge of the matter said.
Analysis:
The European Union's decision on tariffs for China-built electric vehicles has created a divide among member countries. This could impact the financial markets, especially in the automotive sector. With provisional duties set at up to 37.6%, the EU is facing a crucial trade case that could have long-lasting effects. Countries like France, Italy, and Spain are in favor of the tariffs, while others like Germany, Finland, and Sweden have abstained. The outcome of this decision could lead to retaliatory measures from China and potentially reshape trade relations between the EU and China. The European Commission's investigation will continue, with a possibility of proposing definitive duties that may last for five years. The consideration of lower tariffs for specific models like BMW's electric Mini and Volkswagen's Cupra Tavascan shows signs of compromise within the EU.