European Commission secures majority for electric car tariffs against China - German manufacturers protest

The EU Commission sees the necessary support among member states to impose the planned countervailing duties on electric cars from China. Their proposal to impose partially high tariffs on these electric cars has received the necessary support from the EU states, the commission announced. At the same time, the EU and China are continuing to work on finding an alternative solution. The EU Commission accuses China of artificially lowering the price of electric cars with high subsidies, thereby harming European companies. 

Mercedes must also pay - through the Smart cooperation with Geely

After the EU vote, Mercedes fears negative impacts on the industry due to its joint production of the Smart with Geely in China. "We are convinced that punitive tariffs will worsen the competitiveness of an industry in the long term," a spokesperson said. Free trade and fair competition ensure prosperity, growth, and innovation. The punitive tariffs intended by the EU Commission are considered a mistake that could have far-reaching negative consequences. The Stuttgart automaker advocates for a negotiated solution with China. This is in both parties' interest. "We are convinced that such a solution is possible," it continued. However, the development needs time. Therefore, the enforcement of the measures should be postponed.

BMW produces the E-Mini in China

Similar sentiments came from BMW: The Munich manufacturer, which also produces the Mini in China and would therefore be affected, warns of negative consequences following the EU vote on additional tariffs on electric cars from China. "Today's vote is a fatal signal for the European automotive industry," said the CEO of the Munich group, Oliver Zipse. "Now a quick negotiated solution between the EU Commission and China is needed to prevent a trade conflict that would ultimately only have losers." Germany's vote against the tariffs is "an important signal and increases the chances for a negotiated solution."

VW relies on further negotiations

Volkswagen, also present with an electric car production in China, continues to rely on a negotiated solution. "We appeal to the EU Commission and the Chinese government to constructively continue the ongoing negotiations for a political solution," said a statement from the company. "The common goal must be to prevent any protective duties and thus a trade conflict." Until the possible implementation of the decision at the end of October, a negotiated solution that avoids protective tariffs remains possible. Volkswagen still believes "that the proposed tariffs are the wrong approach and would not improve the competitiveness of the European automotive industry."