In the dispute over EU punitive tariffs on electric cars China the auto industry is putting pressure on the federal government and calling for resistance from Berlin. In the traffic light coalition, the FDP-led finance and transport ministries are pushing for a German no vote in Brussels. Chancellor Olaf Scholz (66, SPD) was also critical of possible punitive tariffs. A crucial vote in Brussels is scheduled for Friday. How the federal government will behave remains unclear.
The EU Commission accuses China of heavily subsidizing the entire value chain for electric cars and thus distorting the market. The authority therefore wants to introduce additional tariffs, which in some cases are expected to be more than 35 percent. However, the 27 EU states have a say in the decision. Possible German positions include a no and an abstention. According to the EU Commission, Chinese electric cars are usually around 20 percent cheaper than models manufactured in the EU.
Auto industry warns of global trade conflict
“A vote by the EU states to impose high additional tariffs on electric cars from China from the end of October would be a further step away from global cooperation,” said the President of the Association of the Automotive Industry, Hildegard Müller, to the German Press Agency. “This measure further increases the risk of a global trade conflict.”
Müller demanded that the federal government take a clear stance against the punitive tariffs. Abstention is not an option.
Also BMW-Boss Oliver Zipse (60) demanded that the federal government vote against the punitive tariffs. The 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.” VW is also urging the federal government in Brussels to say no. The proposed tariffs are “a wrong approach; they do not improve the competitiveness of the European automotive industry,” explained a spokesman
Chancellor Olaf Scholz also expressed concerns. “Of course we have to protect our economy from unfair trading practices,” emphasized the SPD politician in Berlin. It’s about level playing field. “However, our reaction as the EU must not lead to us harming ourselves. That’s why negotiations with China regarding electric vehicles must continue.”
Habeck warns of disputes with China
Federal Economics Minister Robert Habeck (55, Green Party) had recently repeatedly warned of a customs dispute with China and said that he was relying on a political solution with the People’s Republic.
The topic may also have played a role at a meeting with French President Emmanuel Macron (46). In the past, Macron had generally spoken positively about punitive measures against China’s electric cars. Scholz also said that we had to tackle where cheap Chinese imports were actually damaging the economy, for example with steel. The World Trade Organization and its principles must be given more attention again.
Transport Minister Volker Wissing (54) warned of “market barriers”. These do not represent a suitable instrument for strengthening the competitiveness of the German or European automotive industry, the FDP politician told the German Press Agency. “The future viability of the automotive industry will be measured by whether electric cars can be offered at a competitive price.” The finance ministry headed by department head Christian Lindner (FDP) is also reportedly in favor of Germany voting no.
Manufacturers like BMW and Volkswagen are therefore directly affected by the tariffs because they also build electric cars in China and then sell them in the EU. For German car manufacturers and their Chinese joint venture partners, the tariff surcharge should be 21.3 percent. The maximum rate is 36.3 percent.
To stop the introduction it would need a majority from 15 member states, which make up 65 percent of the EU population. A result that, according to observers, is considered unlikely even if Germany votes no, among other things because France and Italy are apparently behind the EU Commission’s plans. However, in the past, when the interests of the automotive industry were affected, Germany had often found ways to avert undesirable decisions at the European level.