German car makers, ministers warns of repercussion after EU vote on Chinese   EVs

We appeal to the European Commission and the Chinese government to continue the ongoing negotiations for a political solution constructively – Volkswagen

 

Online Reporter I Friday, October 04, 2024

 

BRUSSELS – After the EU vote to allow additional EU tariffs on electric vehicles from China, German Finance Minister Christian Lindner warned of an escalation in trade policy disputes.

He asserted in a post on X on Friday that despite the vote, the European Commission, under Ursula von der Leyen’s leadership, should not trigger a trade war. “We need a negotiated solution,” he wrote.

In a vote in Brussels, there was not a sufficient majority of EU countries against additional EU tariffs on electric cars from China, which means the commission can decide to impose duties of up to 35.3%. Germany had opposed the move.

German carmakers Volkswagen and BMW called for a resolution to prevent a trade conflict.

Volkswagen called for a negotiated solution. “We appeal to the European Commission and the Chinese government to continue the ongoing negotiations for a political solution constructively,” the company stated in a press release issued on Friday. “The joint aim must be to prevent any protective tariffs and thus avoid a trade conflict.”

A negotiated solution avoiding protective tariffs remains possible until the decision’s potential implementation at the end of October. Volkswagen asserted that “the planned tariffs are the wrong approach and would not improve the competitiveness of the European automotive industry.”

BMW warned of negative consequences. “Today’s vote is a fatal signal for the European automotive industry,” said company boss Oliver Zipse. “Now a quick solution is needed between the European Commission and China to prevent a trade conflict that will ultimately only have losers.”

 

German carmaker Mercedes fears negative impacts on the industry.

“We are convinced that punitive tariffs will worsen the competitiveness of an industry in the long term,” a spokeswoman said on Friday.

Free trade and fair competition, she asserted, secure prosperity, growth and innovation. The potential imposition of punitive tariffs planned by the European Commission, she suggested, is considered a mistake that could have far-reaching negative consequences.

Like VW and BMW the Stuttgart-based car manufacturer instead advocates for a negotiated solution with China, arguing that this is in the mutual interest of both parties.