A man takes photos at the booth of BYD at the Automechanika trade fair in Frankfurt, Germany, September 11, 2024. (Xinhua/Zhang Fan)
The European Commission announced on Tuesday the imposition of anti-subsidy tariffs on electric vehicles (EVs) made in China, a move that has sparked strong opposition within the EU and key industry stakeholders .
From Wednesday, these customs duties will remain in force for five years, at varying rates: 17% for BYD, 18.8% for Geely and 35.3% for SAIC, among the main Chinese car manufacturers.
Other companies that cooperated in the investigation will be subject to a duty of 20.7%, while non-cooperative companies will be subject to the maximum rate of 35.3%, according to the European Commission statement.
Despite the decision, the European Commission said the EU and China continued to explore alternative measures under WTO guidelines to address trade concerns.
The decision sparked strong discontent among EU member states and industry players. Critics argue that such tariffs could burden European consumers, strain EU-China trade and investment relations, hamper Europe’s transition to a greener auto sector and ultimately ultimately undermine global efforts to mitigate the effects of climate change.
Germany’s Economy Ministry has reaffirmed its commitment to “open markets”, emphasizing the country’s dependence on global trade networks and calling for continued negotiations with China to ease tensions. tensions while protecting EU industries.
Slovakia opposed the increase in customs duties. Prime Minister Robert Fico remarked that China was “20 years ahead of us when it comes to EVs”, and warned that increasing trade barriers could ultimately harm Europe more than the China.
Auto industry executives have echoed these concerns. Hildegard Muller, president of the German Automobile Industry Association, criticized the tariffs as a “step backwards for global free trade”, warning of potential job losses, slowing economic growth and weakening market prosperity, as well as against other trade conflicts.
“The door to negotiations remains open. This is the only positive news today,” she said, calling for sustained efforts to open negotiations.
Europe’s major automakers, including Volkswagen, BMW and Mercedes-Benz, have expressed a unified stance against tariffs, advocating open markets that support fair competition.
Oliver Zipse, CEO of BMW, warned that tariffs could “damage the business model of globally active companies, limit the supply of electric cars to European customers and thus slow down decarbonization in the transport sector.” .
Michael Schumann, chairman of the board of directors of the German Federal Association for Economic Development and Foreign Trade, criticized the tariffs as counterproductive, arguing that they run counter to the goals of the Europe to promote electric mobility and advance climate protection.
“The transition to electric mobility is a cornerstone of climate protection, and we must support and advance this transition,” Schumann told Xinhua.
Experts also spoke out, highlighting the broader geopolitical influences. Boyan Chukov, a former foreign policy adviser to the Bulgarian prime minister, claimed that the United States was using the EU as leverage in its economic competition with China.
“China is one of the countries most respectful of environmental regulations. In this regard, it sets an example for other countries to follow,” he said, adding that the additional tariffs are motivated by “political imperatives”.
Liang Guoyong, senior economist at the United Nations Conference on Trade and Development, called the EU’s tariffs “counterproductive.”
He noted that protective and restrictive trade measures on green products, such as EVs, run counter to global efforts to reduce carbon emissions and could increase costs for European consumers.
“Imposing these tariffs would only harm the economic interests of importers and exporters and threaten global progress on climate change,” Liang warned.
