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Home»Economic News»Spain’s Pedro Sánchez calls on EU to ‘reconsider’ Chinese EV tariffs
Economic News

Spain’s Pedro Sánchez calls on EU to ‘reconsider’ Chinese EV tariffs

September 11, 2024No Comments2 Mins Read
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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Spanish Prime Minister Pedro Sánchez has expressed concerns about EU tariffs on Chinese electric vehicles, hinting at a possible reconsideration of Spain’s position. He emphasized the importance of finding a compromise between the EU and China to avoid escalating trade tensions that could negatively impact domestic exporters.

During a press conference in Kunshan, near Shanghai, Sánchez called for a reevaluation of the EU’s stance on imposing new tariffs on Chinese EVs. He stressed the need to prevent a trade war and advocated for a more balanced approach in dealing with the trade dispute.

His remarks, made during his second trip to China post-pandemic, mark a significant shift in Spain’s position and intervention in the ongoing trade conflict between China and the EU. The EU’s proposal to increase tariffs on Chinese EVs followed an investigation into alleged unfair subsidies in China’s automobile industry.

Spain had initially supported the tariff increase in a July poll, but Sánchez’s recent comments suggest a potential change in direction. China has vehemently opposed the proposed tariffs and retaliated with countermeasures targeting European exports, including Spanish pork products.

President Xi Jinping urged Sánchez to play a constructive role in strengthening China-EU relations, emphasizing the importance of closer ties between the two entities. The trade tensions reflect broader strains in Beijing’s relations with western nations, prompting companies to reassess their supply chain strategies.

Despite the trade disputes, China’s trade surplus with both the EU and Spain has continued to grow, underscoring the complex dynamics at play in the global economy.

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