A proposed tariff on Chinese electric vehicles (EVs) by European lawmakers has been criticized by Germany’s Chancellor, who said the tax increase is illegal and isolating.
The European Commission currently applies a 10% tariff on all imported vehicles, with no specific additional tariffs depending on the country of origin.
However, Reuters reported in March that the European Commission is planning to introduce a system that could subject electric vehicles made in China to tariffs to bring their prices closer to similar models made in Europe.
It is also launched a poll whether Chinese automakers are supported by the country’s government through subsidies or not.
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German Prime Minister Olaf Scholz
Bloomberg it is now reported that German Chancellor Olaf Scholz has opposed the proposed tariffs, posing a threat to the country’s auto industry which is supported by partnerships with Chinese manufacturers.
“Isolation and illegal customs barriers – that just ends up making things more expensive and people poorer,” Scholz told the media at Opel’s Rüsselsheim plant.
“We don’t close our market to foreign companies because we don’t want that to happen to our companies either.”
Mr. Scholz believes that the German auto industry is still capable of competing with Chinese electric vehicle manufacturers, as long as the market remains “fair and free.”
According to Mr. Scholz, the German auto industry’s transition to electric vehicles needs to continue to ensure future competitiveness.
“Doubting progress, delaying innovation and transformation – that will have bitter consequences. If we do that, others will surpass us,” he said.
The European Commission is expected to announce proposed tariffs this month, but electric vehicle sales on the continent have cooled in recent months, leading to German giants such as Volkswagen and Mercedes-Benz had to push back their sales goals.
Last monthA major Chinese auto industry lobby group has signaled its intention to impose 25% tariffs on certain vehicles from Europe and the US in response to the two regions’ respective tariffs on with their electric car.
Liu Bin, Deputy Director of China’s Automotive Strategy and Policy Research: “We propose that based on the actual situation of China’s auto consumption and WTO regulations, China should promote promote green and low-carbon car consumption through short-term and long-term measures.” Center, tell China Global Times.
“In the short term, we propose to temporarily increase tariffs on imported sedans and sport utility vehicles (SUVs) with engines larger than 2.5 liters, to reduce imports and support consumption expectations. .”
China currently imposes a 15% tariff on cars of European origin, however many European car manufacturers have been established in the country through joint ventures with local manufacturers.
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