Germany is working to avoid or at least soften the impact of the new EU tariffs on Chinese electric cars, recognizing the importance of backtracking when necessary.
Germany Concerned About New EU Tariffs
The EU announced additional tariffs on Chinese electric cars, with taxes as high as 48.1%, targeting BYD, Geely, and SAIC. This move sparked tension between the EU and China, prompting threats of retaliation.
German automakers like Volkswagen, Mercedes-Benz, and BMW stand to lose from potential Chinese countermeasures due to their heavy reliance on the Chinese market.
Optimism in Berlin
German officials are optimistic about negotiating a solution directly with China before the tariffs take effect on July 4th. Minister of Economic Affairs Robert Habeck will travel to China to discuss the issue in an attempt to prevent an escalation of tariff disputes.
Germany hopes for an agreement with China to avoid disruptive tariffs on the automotive industry, recognizing the need for diplomatic solutions over trade conflicts.