Germany's Economics Minister Robert Habeck is calling on the European Union (EU) and the Chinese mainland to find a political solution to the ongoing tariffs on electric vehicles (EVs).
In a recent statement, Habeck emphasized the importance of avoiding a trade conflict that could escalate into a tariff spiral, potentially harming both the EU and the Chinese mainland. \"We want to avoid a trade conflict that could escalate into a tariff spiral, ultimately harming both sides,\" Habeck stated, highlighting the necessity of a negotiated resolution.
The minister underscored the significant role China plays in the German and European economies, stressing the need for fair competition conditions. \"The European Commission and China should work towards a negotiated solution,\" he added, reaffirming Germany's openness to competition with China under equitable terms.
Habeck's remarks mirror the German government's position expressed last week. A government spokesperson indicated that the federal government has been skeptical about the EU's proposal of EV tariffs from the outset and remains steadfast in this view. The spokesperson also noted that Spanish Prime Minister Pedro Sanchez has urged EU member countries and the European Commission to reconsider their stance on imposing additional tariffs on Chinese EVs.
\"We are very pleased that talks between China and the EU are continuing to prevent such tariffs,\" the spokesperson commented, suggesting that a collective recognition among EU member states that tariffs may not serve the best interests of their industries would be beneficial for all parties involved.
The European Commission introduced provisional additional tariffs on Chinese EV manufacturers in July, following an anti-subsidy investigation launched in October 2023. This tariff plan has raised concerns among industry experts and business insiders across Europe. Critics argue that the measure could undermine the EU's competitiveness, hinder the region's green transition, and escalate trade tensions with the Chinese mainland, contrary to the intended protection of the European auto industry.
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German official urges political solution to EV tariffs with China
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