The German automotive sector has voiced strong opposition to the European Union's (EU) newly introduced tariffs on electric vehicles (EVs) from the Chinese mainland, which are set to take effect this Friday.
These punitive tariffs, reaching up to 37.6 percent, have been provisionally implemented while EU officials continue negotiations with China. A final decision on the tariffs is expected by early November, during which importers are required to deposit guarantees equivalent to the potential duties.
Hildegard Mueller, president of the German Association of the Automotive Industry (VDA), expressed her concerns in a written interview with Xinhua, stating that the additional duties \"are not suitable for strengthening the competitiveness of the European automotive industry.\" This sentiment is echoed by Michael Schumann, chairman of the Board of the German Federal Association for Economic Development and Foreign Trade, who told Xinhua, \"Our position on the EU's punitive tariffs on Chinese electric cars has not changed. We vehemently and resolutely reject them and in doing so are in agreement with the entire German automotive industry, some of which is itself affected by these tariffs.\"
Schumann emphasized the importance of resolving the conflict before the tariffs take effect, highlighting that the EU's environmental goals and consumer interests rely on access to affordable e-mobility, where the Chinese mainland is a global leader.
Major European vehicle manufacturers are also skeptical of the proposed tariffs. Mercedes-Benz stressed the significance of free and fair trade, warning that a shift towards protectionism could have negative economic consequences for all stakeholders. Similarly, BMW criticized the EU's move, with Oliver Zipse, chairman of the Board of Management of BMW AG, stating that \"The introduction of additional import duties leads to a dead end.\"
The EU's Green Deal aims to make Europe climate-neutral by 2050, with a target to reduce greenhouse gases by at least 55 percent by 2030 compared to 1990 levels. Central to these plans is the expansion of electric transportation.
However, the introduction of these tariffs could jeopardize these environmental objectives by slowing the decarbonization of the transport sector and limiting consumer choices, actions that Zipse has described as contradictory to the EU's founding principles.
Statistics from the European Automobile Manufacturers' Association (ACEA) indicate a decline in new registrations of battery-electric vehicles (BEVs) in the EU, with only 114,308 such cars registered in May—a 12 percent year-on-year decrease. Their market share also fell from 13.8 percent to 12.5 percent during the same period.
Historically, the EU has benefited from its openness to international trade. Germany, Europe's largest economy, exported cars and parts valued at 26.3 billion euros ($28.4 billion) to the Chinese mainland last year, while imports from China totaled 6.8 billion euros, according to the VDA.
VDA president Mueller warned that the potential damage from the extra duties could outweigh the benefits of increased market isolation for the European—and especially the German—automotive industry. Schumann urged the EU to base its decisions on the true needs of the people rather than ideological motives.
Reference(s):
cgtn.com
