Germany Urges China to Make 'Serious' Move on Issue of EV Tariffs

By Jace Dela Cruz

Jun 15, 2024 03:55 AM EDT

Germany is urging China to take decisive steps regarding tariffs on imported electric vehicles (EVs), hoping upcoming discussions can prevent a potential trade conflict. 

This photo taken on June 3, 2024 shows an employee working at a factory that produces brake discs for electric cars in Huaibei, in eastern China' Anhui province.
(Photo : STR/AFP via Getty Images)

Germany Wants to Soften EV Tariffs With China

According to Bloomberg, German Chancellor Olaf Scholz's administration advocates for an "amicable" resolution after the European Union (EU) threatened substantial anti-subsidy tariffs to protect European automakers from Chinese competition.

In a news conference, a German government spokesperson emphasized the need for significant action from China to achieve a peaceful resolution, noting that Germany is keen on avoiding a trade war.

"It would be very desirable to come to an amicable solution, but it is also clear that serious movement is needed on the Chinese side," the economy ministry spokesperson noted, according to Bloomberg.

The spokesperson also highlighted the necessity for the EU to find a solution aligned with World Trade Organization standards.

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Why Germany Opposes the EV Tariffs

German Economy Minister Robert Habeck is scheduled to visit China next week. While he will not directly engage in the tariff negotiations, his discussions with Chinese officials will focus on promoting fairer trade conditions.

Germany's opposition to the tariffs is rooted in its auto industry's vulnerability. German carmakers are particularly at risk because nearly a third of their sales in 2023 came from China. 

The German government aims to either prevent the implementation of the tariffs or mitigate their impact to avoid escalating tensions and protect its economic interests. 

READ MORE: China Warns EU About Its Chinese EV Tariffs; Beijing Says It's Ready To Retaliate

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