The connections between the German automotive sector and China are very strongwhich is why tariffs on electric cars produced in China are of great concern to European manufacturers.
“Additional tariffs hurt globally operating companies in this country and could spark a trade dispute that benefits no one” BMW CEO Oliver Zipse said in a statement on Wednesday, quoted by Bloomberg. “The German government should therefore take a clear position.”
How will the German government vote?
Bloomberg reminds that EU member states are preparing to vote on Friday on imposing final tariffs of up to 45%. on imported electric vehicles manufactured in China. To block the decision and introduce tariffs, a qualified majority is needed, i.e. 15 member states representing 65 percent. block population.
According to Bloomberg, German officials signaled on Tuesday thatthe government plans to abstain from votinginstead of voting against. If a similar attitude is taken by more Community countries, blocking tariffs will be much more difficult.
Germany has made clear that it hopes for negotiated solution in ongoing talks between the EU and China. The leaders of Germany and France – German Chancellor Olaf Scholz and French President Emmanuel Macron – are scheduled to discuss tariffs during their meeting in Berlin on Wednesday.
The German automotive sector does not want tariffs
German carmakers have generally rejected the tariffs. The industry believes that the tariffs may threaten sales in their largest car market because the Middle Kingdom may respond in a similar way. In addition, tariffs on production in China also affect the production of European plants operating in China.
Mercedes-Benz Group CEO Ola Källenius has been calling for the opening of markets in recent monthsand Volkswagen CEO Oliver Blume has repeatedly expressed concerns about a potential trade dispute with China, Bloomberg reminds.
