Trade dispute with China: Car trade sees punitive tariffs as “wrong signal”

Trade dispute with China: Car trade sees punitive tariffs as “wrong signal”
Trade dispute with China: Car trade sees punitive tariffs as “wrong signal”

The punitive tariffs on electric cars from China introduced by the EU have been met with criticism from the German car trade. The tariffs could increase prices – and provoke a severe backlash.

The German car trade is skeptical about the provisional punitive tariffs on Chinese electric cars imposed by the EU Commission. They are “the wrong signal for the urgently needed ramp-up of electromobility,” says the Vice President of the Central Association of the German Motor Vehicle Industry (ZDK), Thomas Peckruhn. “This will make the available electric vehicles significantly more expensive for consumers, especially as the competitive pressure on European manufacturers is decreasing,” he expects. “This will further worsen the already cautious purchasing mood, because since the end of the environmental bonus, registration numbers for electric vehicles have fallen sharply for the sixth month in a row.”

In addition, the tariffs are a “blow to the bank” for car dealers who have invested in the sale of a Chinese brand, criticised Peckruhn. The ZDK also fears a Chinese backlash.

EU: Chinese electric cars one fifth cheaper

The tariffs are initially only provisional and are to apply from Friday. They are the result of an investigation by the EU Commission, according to which the entire value chain for electric cars in China is heavily subsidized. Accordingly, imports of Chinese electric cars pose a clearly foreseeable and imminent threat to industry in the EU.

According to the Commission, Chinese electric cars are usually around 20 percent cheaper than models made in the EU. The final introduction of the punitive tariffs is to take place within four months if China does not make further concessions. Until then, the tariffs do not have to be paid, only security deposits for them.

Source: Stern

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