German Carmakers Concerned Over Potential Retaliation Amid EU-China Trade Dispute

German car manufacturers, heavily reliant on the Chinese market, fear retaliatory actions from China as the EU plans tariffs on Chinese electric vehicles. The EU's proposed tariffs, ranging from 15 to 30 percent, aim to address suspicions of unfair subsidies to Chinese automakers.

Despite impending trade tensions, Germany opposes these tariffs, citing concerns about hindering global competition. Chinese electric vehicle makers contemplate strategies like setting up production in other countries to navigate potential EU tariffs, although there are warnings of stricter countermeasures.

The EU's decision on imposing duties on Chinese EVs is postponed until after the June elections to avoid political sensitivity, with expectations of increased import duties as the investigation into Chinese subsidies progresses.