- German Economy Minister Robert Habeck called for a political solution to a dispute between the European Union and China over EV tariffs.
- Provisional tariffs of up to 37.6 per cent on EVs imported from China did not require member states’ support, but the final tariffs could be blocked.
German Economy Minister Robert Habeck called for a political solution to a dispute between the European Union and China over EV tariffs on September 2 after a meeting with Chinese Commerce Minister Wang Wentao.
“We want to avoid a trade conflict with spiralling tariffs that ultimately harms both sides at all costs,” Habeck said, “That is why my position is clear: we need a political solution.”
The European Commission says duties are needed to counter cheap loans, land and raw materials and other subsidies, and the goal is a level playing field rather than shutting Chinese car makers out
“It is important to me to make clear that Germany is not shying away from competition with China,” said Habeck. “On the contrary, we embrace competition – but it must be on fair terms.”
Provisional tariffs of up to 37.6 per cent on EVs imported from China did not require member states’ support, but the final tariffs could be blocked if a qualified majority of the EU’s 27 members oppose them.
A final vote at the end of the EU investigation is expected next week, when the Commission can propose definitive duties, normally applying for five years.
Germany abstained in the first advisory vote, effectively backing the Commission as it continued negotiations with Beijing over the EU‘s largest trade case.
China has repeatedly called on the EU to cancel its tariffs, expressing a willingness to negotiate. China does not want to embroil the country in another tariff war, still stung by US tariffs on its goods imposed by the Trump administration, but says it would take all steps to protect Chinese firms should one happen.