German Car Manufacturers on Edge as EU Considers Tariffs on Chinese Electric Vehicles

German carmakers like BMW, Volkswagen, and Mercedes-Benz are apprehensive about potential retaliatory actions from China following the EU's proposal to impose tariffs on Chinese electric cars due to alleged unfair subsidies. The EU is gearing up to raise tariffs, suspecting China of distorting the market with subsidies, a move vehemently opposed by Germany.

In response, Chinese electric vehicle makers are contemplating setting up production plants in countries like Turkey and Hungary to circumvent EU tariffs, although analysts warn of possible stricter countermeasures. The final decision on tariffs, expected to range from 15 to 25 percent, will be revealed after the European elections, with the EU postponing the decision until after June to avoid political ramifications.