BERLIN: Germany’s Chancellor Olaf Scholz has opposed the imposition of trade tariffs on Chinese electric vehicles (EVs), highlighting significant political divisions within the European Union.
In a crucial vote today, Berlin rejected additional taxes on imported Chinese EVs, contradicting measures proposed by the European Commission over the summer. Nonetheless, the EU’s executive body announced on Friday that it had garnered sufficient backing to implement tariffs of up to 45% on Chinese-made electric vehicles, a move that risks retaliation from Beijing.
Germany’s Finance Minister Christian Lindner cautioned the EU against igniting a “trade war,” emphasizing the need for a negotiated resolution.
Volkswagen also criticized the EU’s decision, stating that it was the “wrong approach.” The company called for further discussions with Beijing to avoid countervailing duties and prevent a trade conflict.
The push for tariffs followed an EU investigation that found China’s electric car industry benefited from “unfair” state subsidies at various levels, enabling its manufacturers to undercut European competitors on price.
Previously, Germany had abstained from a non-binding vote on these measures. However, after intense lobbying from Beijing and the German automotive sector— which relies heavily on exports to China—Scholz voted against the tariffs during an EU member state meeting on Friday.
Despite Germany’s opposition, the tariff proposal was approved, with 10 EU countries in favor, five against, and 12 abstaining. To block the proposal, a qualified majority of 15 EU members, representing 65% of the EU population, would have been needed.
