The German Automobile Industry Association (VDA) expressed its opposition to the EU’s imposition of tariffs on Chinese electric vehicles, saying that such a move would bring the risk of a trade war and threaten German employment.
“Economic and trade relations with China provide a large number of job opportunities in Germany,” VDA head Hildegard Mueller told Welt am Sonntag. “Our companies are transforming with record funding, part of which also comes from in this core sales market.” Mueller pointed out that if a trade conflict breaks out, the EU’s tariffs imposed on the Chinese government’s subsidies for Chinese-made cars may quickly have a negative impact, putting the EU’s goal of promoting electric vehicles and digital technology at risk.
It is noticed that the European Commission is conducting a countervailing investigation into Chinese electric vehicles to decide whether to impose tariffs to protect EU manufacturers. While the investigation will last until November, the EU could impose interim tariffs as early as July.
According to Reuters, these electric vehicles exported from China will account for 8% of the EU electric vehicle market in 2023 and may reach 15% by 2025. “The price of these electric vehicles is generally 20% lower than that of EU-made models.”
