Finland Abstains from EU Vote on China EV Tariffs Amid Market Uncertainty

Finland abstained from a crucial EU vote regarding provisional tariffs on Chinese electric vehicles. The European Commission sought advisory votes from member states on maintaining duties up to 37.6%. Finland expressed doubts, highlighting uncertainties in the market and differing interests among European car manufacturers.

Finland abstained in Monday's EU vote on provisional tariffs on electric vehicles (EVs) built in China, an official at the Finnish embassy to the EU said on Tuesday.

The European Commission had asked union member states for advisory votes on whether to continue the duties that currently are up to 37.6% on EVs imported from China, increasing tensions with Beijing in the EU's largest trade case yet. The Finnish embassy official told Reuters Finland was still uncertain about the tariffs, which are creating uncertainty in markets and value chains.

'Finland still has doubts, especially about the Union's overall interest, knowing that not all European car manufacturers feel that it is in their interests to act,' the official said, speaking on condition of anonymity to discuss the Finnish vote, which had not been made public. The provisional duties are designed to prevent what commission president Ursula von der Leyen has said is a flood of cheap EVs built with state subsidies.

This first vote is not binding. It will be followed by a final vote after which the European Commission's tariff proposal will be adopted unless there is a qualified majority against it.