Berlin, April 13, 2024 – The German automotive industry is strongly opposed to the European Commission’s proposal to impose punitive tariffs on electric vehicles (EVs) imported from China. The industry association VDA warns that such measures would exacerbate existing problems in the sector and jeopardize the transition to e-mobility.
VDA President Hildegard Müller told Welt am Sonntag: “Anti-subsidy tariffs are not the solution. On the contrary, they would have an immediate negative impact in the event of a trade war and endanger the transformation to e-mobility and digitalization.”
Since autumn 2023, the Commission has been investigating whether Chinese EVs benefit from illegal subsidies. This gives them a price advantage over European models, which are on average 20% more expensive. If subsidies are proven, the EU could impose punitive tariffs. Preliminary results of the investigation are expected to be published by June 5th.
German carmakers, which sell 30-40% of their vehicles in the Chinese market, fear retaliation from Beijing. According to the Duisburg Center for Automotive Research, tariffs would be a “self-inflicted wound” and could jeopardize thousands of jobs in Germany.
Instead of tariffs, the VDA proposes strengthening dialogue with China and seeking joint solutions to promote fair competition in the automotive industry.
Sources:
- Reuters:Â https://www.reuters.com/business/vw-ready-deal-with-china-metal-curbs-if-needed-chipmakers-play-down-fallout-2023-07-06/
- Welt am Sonntag:Â https://www.reuters.com/business/vw-ready-deal-with-china-metal-curbs-if-needed-chipmakers-play-down-fallout-2023-07-06/
- Duisburg Center for Automotive Research:Â https://logistics.car-future.com/portfolio/dennis-geers/
Key Points:
- German carmakers oppose EU tariffs on Chinese EVs
- Tariffs could lead to trade war and harm e-mobility transition
- German automakers fear retaliation from China
- Industry calls for dialogue and joint solutions with China
