Tensions over Chinese EVs: German Chancellor wants to avoid levies

Chinese electric cars

Last Wednesday, the European Commission reported that China is subsidizing its own manufacturers, leading to unfair competition. This allows Chinese manufacturers to market their cars extra competitively in Europe. Brussels is now intervening, introducing additional taxes on Chinese EVs starting July 4, up to 38 percent of the list price. Not everyone in Europe is happy about that.

Germany

The German government is very concerned about the possible high import tariffs. Despite increasing competition from Chinese automakers in Europe, Germany does not see these tariffs as the right solution. Indeed, China is a crucial market for German car brands. They fear that these measures could lead to retaliatory tariffs in China, which could hit the German auto industry hard.

Concerns

Brussels has promised Chancellor Olaf Scholz to try to prevent the threat of additional duties on Chinese electric cars. German Transport Minister Volker Wissing has also expressed concerns about these charges. He stressed that European automakers should focus on producing cars that can better compete with Chinese electric vehicles. Scholz expects the problem to be resolved by the end of the month.

Also read: Column: “Import duty on EVs from China destroys EV market”