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Fortune
Fortune
Ryan Hogg, AFP

EU votes in favor of massive tariffs on Chinese EVs. Here's what it means

People view Volkswagen Lingdu L car during 2024 Xinjiang International Auto Show on March 13, 2024 in Urumqi, Xinjiang Uygur Autonomous Region of China. (Credit: Liu Xin/China News Service/VCG via Getty Images)

EU countries on Friday gave a definitive green light to hefty additional tariffs on electric cars made in China, despite strong opposition led by Germany and fears it will spark a trade war with Beijing.

The European Commission—which provisionally approved the step in June after an inquiry found that Beijing's state aid to auto manufacturers was unfair—now has free rein to impose steep tariffs for five years from the end of October.

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