FRANKFURT (Reuters) – The CEO of Volkswagen, Oliver Blume, has proposed that the European Union should reconsider the planned tariffs on China-made electric vehicles to take into account investments made in Europe.
In an interview with Bild am Sonntag, Blume stated, “Instead of punitive tariffs, there should be mutual recognition of investments. Those who invest, create jobs, and collaborate with local companies should receive benefits in terms of tariffs.”
Despite opposition from Germany and German carmakers, the European Union is moving forward with tariffs on China-made electric vehicles. The proposed duties, ranging up to 45%, are expected to be implemented next month for a duration of five years, costing carmakers significant additional expenses to import cars into the EU.
The European Commission, responsible for trade policy in the EU, has cited unfair Chinese subsidies as the reason for the tariffs following a year-long anti-subsidy investigation. However, it has also expressed willingness to continue discussions with Beijing.
Blume warned that potential retaliatory tariffs from China could negatively impact European carmakers.