German Official Calls for Political Solution to Resolve EV Tariffs Issue with China

Germany's Economics Minister Robert Habeck has urged the European Union (EU) and China to find a political resolution regarding tariffs on electric vehicles.

German Official Calls for Political Solution to Resolve EV Tariffs Issue with China
German Economics Minister Robert Habeck has urged the European Union and China to find a political resolution concerning electric vehicle tariff disputes.

"We want to avoid a trade conflict that could escalate into a tariff spiral, ultimately harming both sides," Habeck remarked on Tuesday, indicating his strong preference for a diplomatic approach.

Habeck highlighted the importance of China to both the German and broader European economies, stressing the necessity for fair competition. “The European Commission and China should work towards a negotiated solution,” he stated, emphasizing collaboration over conflict.

This sentiment reflects the broader position of the German government, as presented during a press briefing last week where a federal government spokesperson shared concerns about the EU's suggestion to implement additional tariffs on Chinese electric vehicles. The spokesperson reiterated the government's consistent skepticism regarding the EU’s plans.

"We are very pleased that talks between China and the EU are continuing to prevent such tariffs," the spokesperson mentioned, advocating for a broader consensus among EU nations against the tariff measures.

The discussion regarding tariffs follows the European Commission’s decision to apply provisional additional duties on Chinese EV manufacturers in July, a move initiated after the launch of an anti-subsidy investigation concerning Chinese electric vehicles in October 2023.

The introduction of this tariff measure has triggered a debate among industry stakeholders and experts in Europe who believe that such tariffs might negatively affect the EU's competitive edge, impede its environmental goals, and increase trade tensions with China rather than safeguard the European automotive sector as intended.

Sanya Singh for TROIB News