EU governments hesitant on Chinese EV tariffs as trade spat escalates

EU countries are wavering over whether to back additional tariffs on Chinese-built electric vehicles, highlighting Brussels' challenge in building support for its largest trade case yet as Beijing threatens wide-ranging retaliation.

Germany, whose carmakers made a third of their sales last year in China, wants to stop the tariffs, according to a government source, while France has been among the firmest backers.

But a majority of countries are still weighing the pros and cons of the escalating trade spat, according to an informal poll by Reuters of EU governments.

The issue will be put to members in an advisory vote in the coming weeks, the first official test of support in a landmark case for the Commission. The EU initiated the probe without an industry complaint, the first such trade case of this kind.

The bloc is set to confirm on Thursday provisional duties of up to 37.6% on Chinese brands such as BYD (002594.SZ), opens new tab, Geely (GEELY.UL) and SAIC (600104.SS), opens new tab, as well as on China-made models of Tesla (TSLA.O), opens new tab, BMW (BMWG.DE), opens new tab and other western automakers.