Italy backs EU tariffs on Chinese electric vehicles amid diplomatic talks

Italy has publicly declared its support for proposed EU tariffs on Chinese electric vehicles (EVs). This stance, articulated by Italian Foreign Minister Antonio Tajani, comes at a crucial time as Chinese Commerce Minister Wang Wentao conducts diplomatic visits across Europe to discuss the EU’s anti-subsidy case against China-made EVs.

Minister Tajani, in an interview with the Italian daily Corriere della Sera published on Monday, stated unequivocally, “We support the duties that the EU Commission proposes, to protect the competitiveness of our companies.” This declaration precedes a high-stakes meeting between Tajani and Wang in Rome, underlining the importance of the issue in current EU-China relations.

The European Commission, the EU’s executive arm, is on the verge of proposing final tariffs of up to 35.3% on EVs manufactured in China. These tariffs would be in addition to the EU’s standard 10% car import duty, potentially significantly impacting the competitiveness of Chinese EVs in the European market.

Minister Wang’s European tour is seen as a critical diplomatic effort to address the EU’s anti-subsidy case against Chinese EVs. The timing of these discussions is particularly significant, as they occur just before a crucial vote on the implementation of additional tariffs. Wang is scheduled to meet with Valdis Dombrovskis, the European Commission’s Executive Vice President and Trade Commissioner, on September 19, where the EV tariff issue is expected to be a central topic of discussion.

Following the meeting between Tajani and Wang in Rome, the Italian Foreign Ministry released a statement outlining the topics discussed. While the statement did not directly mention EVs, it highlighted discussions on intellectual property protection, trade in the agri-food sector, and investment. Additionally, the ministers addressed broader geopolitical issues, including the ongoing war in Ukraine and crises in Gaza and the Red Sea. Italy reportedly called on China to assist in addressing the issue of arms supplies to Russia and ensuring the safety of shipping in the Red Sea.

Tajani emphasised Italy’s desire for a balanced trade relationship with China, stating, “We want to work on a trade plan based on equality, we demand equal access for our products in their markets. Our companies must compete on equal terms.” These principles were reiterated during the meeting with Wang, underscoring Italy’s commitment to fair trade practices.

It’s worth noting that Italy’s position on the EV tariffs has evolved over time. While the country initially supported tariffs in a non-binding vote of EU members in July, Italian Industry Minister Adolfo Urso suggested in a recent interview with Reuters that he anticipated a negotiated solution to the dispute.

The ongoing discussions and Italy’s current stance come against the backdrop of planned high-level diplomatic engagements between Italy and China. Italian President Sergio Mattarella is scheduled to visit China later this year, with Foreign Minister Tajani expected to be part of the delegation. This upcoming visit adds another layer of complexity to the current trade discussions and highlights the delicate balance Italy must maintain in its relations with both the EU and China.

The EU’s proposed tariffs on Chinese EVs represent a significant escalation in trade tensions between the bloc and China. The move is largely seen as a response to concerns about unfair competition and the alleged subsidisation of Chinese EV manufacturers by the Chinese government. European automakers have expressed worries about the rapid influx of cheaper Chinese EVs into the European market, potentially threatening domestic industries and jobs.