The European Union (EU) is imposing additional import duties on electric cars from China despite opposition from Germany.
A high-ranking EU representative said that the additional tariffs were formally approved on Tuesday. They should be published in the Official Journal of the EU later in the day or on Wednesday and come into force the following day. Additional import duties of up to 35.3 percent on e-cars manufactured in China are planned. German car manufacturers are also affected – BMW builds the electric Mini in China and imports it into the EU, Volkswagen the Cupra Tavascan model.
The levies are in addition to the usual EU import duties of ten percent for cars. The EU accuses China of massively subsidizing the production of e-cars and thus unfairly competing with European car manufacturers with cheap exports. However, German car manufacturers are vehemently opposed to punitive tariffs because they fear retaliatory measures from China that could affect their business in the important sales market. According to earlier statements from diplomatic circles, the German government voted against the punitive tariffs.
A spokesperson for the Ministry of Economics in Berlin stated that they continue to support a negotiated solution. The negotiations with China are complex and have not yet led to a result. However, the Commission has made it clear that it will continue to negotiate with China, even after the imposition of countervailing duties. “The German government stands for open markets. As a globally integrated economy, Germany in particular is dependent on this. As the Federal Government and the BMWK, we have therefore advocated a negotiated solution with China and we will continue to do so.”
(Report by Philip Blenkinsop, with the assistance of Andreas Rinke, written by Birgit Mittwollen; edited by Hans Busemann; if you have any queries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets)).
