Brussels (The Brussels Morning Newspaper) – VW CEO Blume expresses China’s EV makers should be permitted to avert higher tariffs by investing in the EU.
Volkswagen CEO Oliver Blume expressed in an interview with Bild am Sonntag that the European Union should review its decision to inflict higher tariffs on China-made electric cars.
“Instead of punitive tariffs, this should be about mutually giving credit for investments. Those who invest, create jobs and work with local companies should benefit when it comes to tariffs,”
Blume said.
What are the implications of tariffs on Chinese EVS?
Earlier this week, the European Commission chose to impose additional tariffs of up to 35% on imports of Chinese battery electric vehicles (BEVs) after 10 member states voted in favour of the move, 12 refrained and five, including Germany, were against. The European Union will push ahead with tariffs on China-made electric vehicles, the EU executive said, even after the bloc’s largest economy Germany and German carmakers abandoned them, exposing a split over its biggest trade row with Beijing in a decade.
The suggested duties on EVs built in China of up to 35% would command carmakers billions of extra dollars to bring cars into the bloc and are set to be charged from next month for five years.
The Commission, which leads the bloc’s trade policy, has said it would counter what it witnesses as unfair Chinese subsidies after a year-long anti-subsidy investigation, but it also stated it would continue discussions with Beijing. VW’s Blume told Bild am Sonntag that there was a chance that retaliatory tariffs by China would hurt European carmakers.
Moreover, China’s state-run Xinhua news agency cautioned that the European Commission’s decision to move with tariffs on Chinese-made electric vehicles (EVs) could harshly strain China-EU relations and threaten global climate objectives.
Chinese imports of electric vehicles into Europe have overflowed in recent years, leading to concerns among European automakers regarding market disruption. Beijing has reacted by challenging the tariffs at the World Trade Organization.
