Spain urges EU to rethink tariffs on Chinese EVs before October vote

Spanish Prime Minister Pedro Sánchez has urged the European Union to reconsider its proposed tariffs on Chinese electric vehicles ahead of a crucial vote scheduled for October. During a press conference in Kunshan, China, Sánchez highlighted the potential negative impact of escalating trade tensions on Spain's domestic exporters. He called for a compromise between the EU and China, emphasizing the need to avoid a trade war that could further harm economic relations. The EU's proposal to increase tariffs on Chinese EVs, potentially up to 37.6%, stems from concerns over unfair subsidies in China's automobile industry. This move has raised alarms among EU member states, particularly Spain, which had previously supported the tariff increase in an advisory poll. Sánchez's recent comments indicate a possible shift in Spain's position, which could influence the final decision on the tariffs. China has reacted strongly against the proposed tariffs, labeling them as unfair and threatening to protect its EV industry. In response, China has initiated countermeasures, including an investigation into pork imports from Europe, which could adversely affect Spanish producers. This situation underscores the delicate balance of trade relations between the EU and China, particularly in the context of the growing electric vehicle market. As Chinese automakers continue to invest in overseas expansion despite trade barriers, the outcome of the upcoming vote will be critical. It will not only affect the automotive industry but also set the tone for future trade relations between the EU and China, highlighting the importance of diplomatic negotiations in resolving trade disputes.