Erni's electrifying tricks: "Tariffs only bring counter-tariffs"

We continue to follow the Zündel family through their everyday life with the electric car. And we learn from the many encounters along the way. Disclaimer: Any similarity to living persons is purely coincidental.

"EU introduces punitive tariffs on electric cars from China," reads Zündel. He doesn’t understand the world anymore. "What the heck is this? Don’t they know what impact this could have on our own automotive industry and the development of e-mobility? After all, this is only provisional for now."

Mrs. Zündel shakes her head. "This will quickly change to 'permanent' if fifteen or more EU countries agree within the next four months. Considering that China is the third largest export market for German car manufacturers, and that's not all. Many produce in China themselves and import the vehicles from China to the EU."

Mr. Zündel checks the facts: The reason for the introduction is to prevent unfair competition. As Chinese car manufacturers receive high state subsidies, they can offer the vehicles at lower prices. This is what they want to prevent.

But trade is not a one-way street. Therefore, it is clear that politics here completely naively ignores the consequences of such punitive tariffs. One can only wait for how the People’s Republic will react. Even the VDA has issued a warning about this – if China reacts, it will particularly hit the German auto industry hard. It would increase production costs for German car manufacturers who produce in China or are heavily dependent on Chinese suppliers. Mrs. Zündel interjects:

"Even the automotive industry itself speaks out against it and this is simply ignored."

Her husband nods in agreement.

"In addition, it will slow down the development of e-mobility in the EU. Although competition would be reduced, the prices for electric vehicles would rise. Not everyone could afford the electric vehicles anymore, the acceptance of e-mobility among the general public would decrease, and the climate targets could not be achieved. The whole political chatter about technology openness then comes on top like a cherry on the cake."