E-cars are selling poorly, and the high prices also deter potential buyers. The industry warns that tariffs on Chinese imports into the EU would probably not make things better.
The industry expects the introduction of punitive tariffs on Chinese electric cars to have negative consequences for the automotive trade and car buyers. For consumers, the intervention in competition with Chinese manufacturers threatens to make prices for electric cars more expensive, said the vice president of the Central Association of the German Motor Vehicle Trade (ZdK), Thomas Peckruhn, in the “Augsburger Allgemeine”. That would further deteriorate the already cautious buying mood.
Peckruhn said that punitive tariffs would distort competition for car dealers who decided to take up a Chinese brand and made investments to do so. In addition, the likelihood of a Chinese backlash is high. This would affect all exports of vehicles not produced in China and lead to a weakening of manufacturers and suppliers based in Germany. “Punitive tariffs are not a solution for fair, global trade,” emphasized the association vice-president.
The path for EU tariffs is clear
The EU could impose additional tariffs on electric cars from China despite resistance from Germany. A sufficient majority of EU states have not spoken out against the plan, as EU diplomats confirmed on Friday. This means that the EU Commission can decide at any time to introduce taxes of up to 35.3 percent. German car manufacturers reacted with concern and continue to hope for a negotiated solution. The Chinese government, for its part, wants to continue negotiations.
Source: Stern
