Written by Tsvetana Paraskova of OilPrice
Germany is still undecided on whether to support the EU’s proposal to impose tariffs on electric vehicles imported from China, according to the chief economic adviser of German Chancellor Olaf Scholz, speaking to Bloomberg TV on Tuesday.
The EU had previously imposed provisional tariffs of up to 36% on Chinese EV imports, in addition to the standard 10% import duty. Member states of the EU are set to vote on Friday whether to make these tariffs official, following findings that China has been providing significant subsidies to EV manufacturers.
However, Germany, as Europe’s largest economy and a key player in the auto industry, is concerned that these tariffs could lead to a full-blown trade war with China, negatively impacting its major car manufacturers.
Despite opposing the tariffs on EVs, Germany has yet to announce its voting decision for Friday, as stated by Jorg Kukies, the chief economic adviser to Scholz, in an interview with Bloomberg.
German automakers have a substantial market presence in China and are deeply integrated into the global supply chain, making Germany skeptical of the tariffs, Kukies explained.
“A negotiated resolution would be preferable to implementing tariffs, regardless of their scope,” Kukies emphasized to Bloomberg.
As of July 5, the current tariffs are provisional and will only be in effect for a maximum of four months.
These tariffs have triggered retaliatory measures from China, including anti-dumping investigations into EU imports such as brandy and pork, likely targeting countries like Spain, France, the Netherlands, and Denmark.
The German Association of the Automotive Industry (VDA) has stated that the anti-subsidy tariffs will not achieve the intended goal of ensuring fair competition and protecting the domestic industry from unfair practices, affecting both Chinese and European manufacturers and their joint ventures.
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