Germany’s automotive industry has voiced strong opposition to the European Union’s planned punitive tariffs on electric vehicles (EVs) imported from China. The tariffs, which could be as high as 37.6 percent, are set to be introduced provisionally while negotiations with China continue.
“The extra duties are not suitable for strengthening the competitiveness of the European automotive industry,” Hildegard Müller, president of the German Association of the Automotive Industry (VDA), said in a written interview. She emphasized that open markets and fair competition are essential for the industry’s growth and innovation.
Michael Schumann, chairman of the Board of the German Federal Association for Economic Development and Foreign Trade, echoed these sentiments. “We vehemently and resolutely reject the EU’s punitive tariffs on Chinese electric cars,” Schumann told Xinhua. “It is in the interest of Europe’s environmental goals and consumers that the EU has access to affordable e-mobility, where China is a leader.”
Leading German car manufacturers have also expressed concerns. Mercedes-Benz underscored the importance of free and fair trade, warning that protectionism could have negative economic consequences. “If a general trend towards protectionism gains a foothold, this has negative economic consequences for all stakeholders involved,” the company stated.
Oliver Zipse, chairman of the Board of Management of BMW AG, criticized the EU’s move, stating that “the introduction of additional import duties leads to a dead end.” He cautioned that such measures could slow the decarbonization of the transport sector and limit consumer choice, conflicting with the EU’s founding principles.
As part of its Green Deal, the EU aims to become climate-neutral by 2050 and reduce greenhouse gas emissions by at least 55 percent by 2030 compared to 1990 levels. The automotive industry plays a crucial role in achieving these targets through the expansion of electric transportation.
However, new registrations of battery-electric vehicles (BEVs) in the EU are already showing signs of decline. According to the European Automobile Manufacturers’ Association (ACEA), only 114,308 BEVs were registered in May, a 12 percent decrease year-on-year, with market share falling from 13.8 percent to 12.5 percent.
The German automotive industry’s relationship with China has historically been beneficial. In 2022, Germany exported cars and automotive parts worth 26.3 billion euros ($28.4 billion) to China, while imports from China amounted to 6.8 billion euros, according to the VDA.
“The potential damage from the extra duties is likely to outweigh the potential benefit of increasing market isolation for the European—and especially the German—automotive industry,” Müller warned.
Schumann urged the EU to reconsider its stance, cautioning against decisions based on ideological motives. “Brussels should act according to the true needs of the people,” he said, emphasizing the importance of cooperation in achieving environmental goals and meeting consumer demands.
Reference(s):
cgtn.com
