BERLIN: “German Car Industry Calls for EU to Drop China Car Tariffs”, Germany’s VDA auto association has urged the European Commission to drop its planned tariffs on China-made electric vehicles in a last-ditch effort to influence negotiations ahead of the tariffs kicking in on Thursday (Jul 4).
The association said in a statement on Wednesday the tariffs would hurt European and US carmakers exporting from China and risked retaliation by China with counter-tariffs, which would hit the German industry hard given its high volume of exports to China.
The value of passenger car exports from Germany to China last year was more than three times the value of imports from China, and the value of exports by component suppliers was four times as much as the value of imports, according to the VDA.
The Commission should instead focus on securing access to critical raw materials – many of which are controlled by China – for Europe’s EV industry, reducing barriers to market access, and creating transparency on trade policy, the VDA said, proposing the creation of a council to discuss such matters.
“Anti-subsidy tariffs are not an adequate measure to strengthen European competitiveness and resilience in the long term,” it said.
China and the European Commission have engaged in negotiations since last week concerning restrictions that Beijing is advocating to be lifted, dismissing claims of unfair subsidies. The discussions are crucial as both sides seek to resolve the trade dispute before the impending deadline.
Brussels has made clear that it expected China to come to technical talks taking place this week with a road map for “addressing the injurious subsidisation” of its EV industry if there were to be a negotiated outcome.
