Concerns Over Tariffs: VW CEO Advocates for Negotiation

Oliver Blume, CEO of Volkswagen, has expressed significant concern following the European Union's decision to impose additional tariffs on Chinese electric vehicles. He fears that this could provoke retaliatory tariffs from China on German cars, whether they are exported or manufactured locally. Blume emphasized the potential risks, stating, 'This risk is definitely present if these unilateral tariffs are implemented.' He urged the German government to adopt a clear stance against such tariffs within the EU framework.

With a deadline looming at the end of October for these tariffs to take effect, Blume remains hopeful for negotiations between Brussels and China to yield a fair resolution beneficial for both parties. He highlighted that additional tariffs could impose up to 30 percent extra costs on German vehicles in China, creating substantial disadvantages for Volkswagen in a crucial market.

Blume advocates for a shift away from punitive tariffs, suggesting that investments and job creation should offer advantages regarding customs duties. He believes that companies that invest and collaborate with local businesses should be rewarded rather than penalized.

The German government has responded to the pressure from its automotive industry by voting against the tariffs, following Chancellor Olaf Scholz's intervention. As discussions continue, the focus remains on navigating a path that avoids escalating trade tensions and promotes mutually beneficial outcomes.