EU governments waver over Chinese EV tariffs

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STORY: EU counties are divided over whether to back the bloc's new tariffs on Chinese electric vehicles.

A government source said Germany wants to stop the duties altogether.

Its carmakers made a third of their sales last year in China.

And a leading auto industry group from the country urged the EU to back down Wednesday.

But fellow European powerhouse France has been among the strongest supporters of the tariffs.

And a poll by Reuters showed a majority of countries are still weighing the pros and cons of the trade fall-out.

The issue will be put to EU members in an advisory vote in the coming weeks.

The bloc is due to confirm on Thursday provisional duties of up to 37.6% on Chinese EV-makers like BYD.

China-made models from western automakers, like Tesla and BMW, will also be hit.

EU members will then vote in October if the Commission proposes multi-year tariffs at the end of its investigation.

But these would be blocked if at least 15 countries representing 65% of the EU population votes against them.

France, Italy and Spain, with 40% of the EU population, have indicated they would support tariffs.

While sources say others like Poland and Greece are still debating the issue.

The Commission says the aim of the duties is to level the playing field, rather than shut Chinese automakers out.

It wants to counter cheap loans, land, raw materials and other subsidies.

Supporters also believe tariffs could give the EU leverage in negotiations with Beijing and push producers to make cars in the EU.

But there is concern over the danger of retaliation from China.

It's thought Beijing could put its own tariffs on EU exports of cognac, pork or luxury cars.