Reports indicate that the German automotive industry has condemned the EU's tariffs on Chinese electric vehicles, calling it another severe blow to the German automotive sector.
Hildegard Mueller, president of the German Association of the Automotive Industry, issued a statement strongly opposing the EU's tariffs on electric vehicles imported from China. She argued that this move represents a setback for global free trade and negatively impacts Europe's prosperity, employment, and economic growth. Mueller warned that the decision could escalate trade conflicts, ultimately harming the entire industry.
As a result, Germany voted against the EU's proposed tariffs on Chinese electric vehicles in early October. The German automotive industry, which contributes about 5% to the national economy, has already been struggling with weak demand in Europe and China.
Mueller emphasized that trade disputes should be resolved through dialogue. She urged governments to take measures to enhance Germany's international competitiveness as a manufacturer and exporter, promote market diversification, and encourage innovation to ensure Germany remains active on the global stage.
Mueller also pointed out that imposing tariffs would lead directly to higher costs for consumers purchasing cars, which could hinder the adoption of electric vehicles. She called for all parties to keep negotiations open and strive to eliminate additional tariffs through dialogue within the World Trade Organization framework.
Ferdinand Dudenhoeffer, director of the German Center for Automotive Research, noted that German electric vehicles face significant challenges in the Chinese market. He emphasized that the strategy should be to develop and produce electric vehicles in China. However, high tariffs now undermine the economies of scale necessary for the German automotive industry.
Critics argue that EU tariffs artificially inflate the price of electric vehicles, which are already more expensive than fuel vehicles, discouraging price-sensitive consumers. This could make it more difficult for European countries to achieve climate goals, and automakers who fail to meet electric vehicle sales targets might face carbon emissions fines.
Dudenhoeffer also warned that China could retaliate by imposing tariffs on traditional fuel vehicles imported from Europe, which would deal a significant blow to German automakers.
Michael Schumann, chairman of the German Federal Association for Economic Development and Foreign Trade, stated in an interview with Xinhua News Agency that he opposed punitive tariffs on electric vehicles exported to China, saying it was not in the interest of European citizens. He noted that electrification is the cornerstone of combating climate change and should be supported and encouraged.
A spokesperson for the German Ministry of Economy indicated that Germany supports ongoing EU-China negotiations and hopes to ease trade tensions through diplomacy. Germany is committed to keeping its market open and depends on global connectivity as a leading global economy.
Michael Bos, head of the international department at the Berlin Brandenburg Automotive Suppliers Association, said that the EU's decision exacerbates trade disputes and will ultimately damage global free trade. He added that this approach would not solve the strategic and structural issues faced by the European automotive industry and would hinder the promotion of electric vehicles in Germany and Europe, threatening the achievement of carbon reduction targets.
Slovak Prime Minister Robert Fico expressed opposition to a trade war with China, saying it would be unwise to impose taxes on Chinese electric vehicles, as this would severely harm Europe itself. He pointed out that China's electric vehicles are ahead of Europe, and Chinese advanced production capacity can help improve European productivity.
Austrian automotive expert Fritz Indra stated that imposing tariffs to exclude Chinese electric vehicles would not protect European automakers or eliminate the price advantage of Chinese electric vehicles.
Boyan Chukov, former foreign policy adviser to the Bulgarian prime minister and former secretary of the Security Council, commented that China's investment in promoting green transformation sets an example for other countries. He claimed that the EU's tariffs on Chinese electric vehicles are politically motivated, as the United States sees China as its main economic competitor and uses the EU as a tool in the trade war against China.
Romanian economist Andre Radulescu remarked that Chinese electric vehicles are essential for the world during the transition to a green and digital economy. He argued that globalization based on multilateralism is the best way for countries to integrate into the global economic cycle.
Liang Guoyong, senior economist at the United Nations Conference on Trade and Development, stated that the EU's tariffs on Chinese electric vehicles are harmful to others and not beneficial to itself. Protective and restrictive trade measures in the field of green products do not align with the economic interests of importers or exporters and do not promote the development of a low-carbon economy or international cooperation on climate change. EU consumers will face higher costs for Chinese electric vehicles, leading to unnecessary losses.