The German automobile industry association VDA and senior government ministers have criticized the initial EU tariffs on electric cars made in China announced today (June 12), which will also hit European companies producing in China, such as BMW and Dacia.
European Commission Initial tariffs announced on imported Chinese electric vehiclesKnown as “countervailing duties,” which will be in the range of 17% to 38%. This was in response to Chinese subsidies for the electric vehicle supply chain, which distort the prices of electric vehicles made in China, according to the commission.
The VDA, which represents carmakers such as Volkswagen, BMW and Daimler, strongly criticized the decision, and its president Hildegard Müller warned that it was… “Another step away from global cooperation.”
She added: “This action increases the risk of a global trade conflict.”
European automakers that produce electric cars in China will also be affected, the largest of which are Dacia and BMW, which will face import duties of 21%.
This is even higher than Chinese automaker BYD, which will see a 17.4% lower tariff because it participated in Commission-led investigation It provided evidence that it benefited from less government support.
US automaker Tesla will also face a 21% tariff on its models made in China, but has applied for a reduced rate, while other automakers have not yet done so.
All the new tariffs come in addition to a 10% duty that the European Union already applies to imported electric cars.
The Association of European Automobile Manufacturers ACEA, whose members have more diverse interests, said they “Takes note of the decision.
The German government is pressing for negotiations
German Transport Minister Volker Vissing (Free Democratic Party/Renewal) was quick to do so Share on X Which “The punitive tariffs imposed by the European Union Commission affect German companies and their most important products.”
“Cars should become cheaper through more competition, open markets, and significantly better working conditions in the EU, not through trade wars and market division,” he wrote.
Economy Minister Robert Habeck (Green Party) made similar statements, telling German media that “tariffs are always a last resort as a political measure and often the worst option.” .
He added, “It is important that there be talks now,” calling for negotiations between the European Union and China.
China needs to address climate change
German companies are also concerned about potential retaliation from China, with Volker Trier of the DIHK business chamber warning that “the tariffs announced by the Commission on e-cars from China will not be without consequences for the heavily export-oriented German economy.”
These concerns were exacerbated by the response of the Chinese Ministry of Commerce, which said it was ready to “take all necessary measures” to defend the interests of its manufacturers.
VDA’s Müller called on the EU and China to resolve the issue through negotiations, adding that “it is also up to China to engage with Europe with constructive proposals and stop distorting competition behavior continuously and quickly in order to avoid escalation of trade disputes.” .
“We need China to solve global problems,” including climate change, Mueller said. “Trade conflict would also jeopardize this transition.”
Her criticism of the tariffs was not shared by the European NGO Clean Transport (T&E), which welcomed the tariffs.
“The EU Green Deal came with the promise of growth and jobs, which is not possible if all our electric cars are imported,” Julia Poleskanova, the organisation’s electric car expert, said in a statement.
(Editing by Donagh Cagney/Zoran Radosavljevic)