Germany, led by Chancellor Olaf Scholz, is taking a firm stance against proposed EU tariffs on Chinese electric vehicles. These tariffs, potentially reaching 35%, are aimed at countering alleged subsidies by China that make their vehicles 20% cheaper than EU models. Scholz, with support from the German automotive industry, argues that such tariffs could spark a detrimental trade conflict with China and harm joint ventures and exports.
The German government aims to leverage Europe's negotiating power to ensure fair competition without resorting to punitive tariffs. This stance, however, has caused internal disagreements within Germany's coalition government, with differing opinions from parties such as the Greens and the FDP. The EU Commission's proposal has also been met with resistance from other EU countries, like France and Italy, which support the tariffs.
Despite internal and external opposition, Germany plans to vote against the tariffs in Brussels, emphasizing the importance of maintaining a level playing field and avoiding a trade war. The decision is critical as it requires a majority vote from EU member states to pass. As Germany pushes for negotiation over confrontation, the outcome of this decision could have significant implications for the European automotive market and its relations with China.
