The question of duties on electric cars coming from China is far from resolved. The decision of the EU Commission to impose further provisional tariffs of up to 38.1% on vehicles assembled in China and then exported to the Old Continent has not been welcomed by everyone, and we are not just talking about the Asian country: in fact, several European players in the field are convinced that this move is only the first step towards a trade war which would lead to serious consequences for the EU.
Scholz’s proposal
This is also why German Chancellor Olaf Scholz has reportedly put forward a negotiation proposal in the hope of dissuading the EU Commission from escalating the trade conflict with China: this is reported by the German economic daily Handelsblatt, which explains how Scholz suggests that China and Europe align their car tariffs. on a low level. What is this level? Precisely has not been indicated, even if it is spoken of reciprocal duties of 15%.
The EU Commission says no
A proposal that however seems destined to remain as such: it seems in fact that the EU Commission has already excluding this hypothesis, since in his opinion it would not solve the fundamental issue. And the issue is simple in the European view of things: the People’s Republic of China supports its own automotive industry with huge subsidiesto the point that local manufacturers can offer their vehicles at particularly low prices with the risk of supplanting their European rivals.
Chinese electric car tariffs
Hence the EU’s choice to impose higher duties, a measure which, according to Scholz himself, risks being an own goal. The reason? China, in response to European tariffs, could make imports of German luxury cars more difficult, true worry of the Chancellor of Germany who, as is normal, watches his own home. That’s why his point of view is so clear: the EU’s plans risk creating more harm than goodBut the Commission has no intention of taking any steps backwards for the time being.
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