Brussels and Beijing have been arguing for months over tariffs on electric cars from China. German car manufacturers warn of the consequences.
Before the EU states voted on punitive tariffs on Chinese electric cars, BMW boss Oliver Zipse called on the federal government to give a clear no. Prosperity in Germany depends on open markets and free trade. Additional tariffs would harm globally active German companies and could “conjure up a trade conflict that in the end only knows losers,” said Zipse. “The federal government should therefore take a clear position and vote against the introduction of additional tariffs in the EU.”
The EU Commission has investigated competition-distorting subsidies for Chinese electric cars and is planning punitive tariffs of up to 36 percent. The final decision now lies with the 27 Member States. The Chinese government accuses the EU Protectionism and threatens countermeasures.
According to the VDA industry association, the German auto industry exported vehicles and parts to China for 26.3 billion euros last year. Cars and components were imported from China for 6.8 billion euros. According to the VDA, the possible damage of punitive tariffs for the German auto industry is greater than the possible benefit.
Source: Stern
