German Manager Magazine: Punitive tariffs: German car manufacturers are trembling because of the EU decision on Chinese electric cars003689

The EU additional tariffs on the import of electric cars China step despite resistance from Germany finally in force. The EU Commission passed the necessary regulation on Tuesday, according to a document. This regulation will apply from Thursday after publication in the EU Official Journal.

A sufficiently large majority of EU states had previously voted for the punitive tariffs at the beginning of the month. Germany voted against it – out of fear of one new major trade conflict and possible retaliation against German manufacturers.

From the European Commission’s perspective, the countervailing duties are necessary to secure the long-term future of the auto industry in the EU. An investigation concluded that Chinese manufacturers benefit from unfair subsidies that give them a significant advantage in the European market. Accordingly, Chinese electric cars can usually be offered around 20 percent cheaper than models manufactured in the EU. The EU Commission had already introduced provisional countervailing duties in July.

For electric cars from the manufacturer BYD An additional levy of 17.0 percent will now apply in the future, as can be seen from the regulation. For electric vehicles from the manufacturer Geely, 18.8 percent is due. The maximum rate is 35.3 percent.

Search for compromise without success

It is still unclear how China will react to the final imposition of the tariffs. The government in Beijing accuses the EU of protectionism and has threatened in the past, in particular with higher tariffs on the import of large-displacement combustion engines from the EU into the People’s Republic. German car manufacturers would be particularly affected by this.

China also began possible retaliatory measures Additional taxes on the import of pork and dairy products to check. An investigation into brandy has already led to preliminary measures.

Negotiations about a possible amicable solution to the trade dispute remained unsuccessful until the end. One option seen is that e-car dealers can enter into price commitments and thus avoid tariffs.

Importance for Germany

The trade dispute is a big issue for German industry because China is the largest car market in the world and companies fear losing one of their most important sales markets. German companies like VW, Mercedes and BMW There they not only produce cars specifically for the Chinese market, but also for export.

The automobile industry association warned that the tariffs would not only increase the risk of a mutual trade conflict, but would also make vehicles more expensive for consumers.

In addition, the ramp-up of electromobility and thus the achievement of climate goals will be slowed down in a “particularly critical phase,” said a spokesman for the German Press Agency. In Brussels, on the other hand, there is an assessment that this position is primarily dominated by top managers from car manufacturers. They are accused of wanting to achieve good figures, especially in the short and medium term, and not having much of an eye on the long-term survival of the auto industry.

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