Frankfurt (Business Emerge), October 7: Volkswagen CEO Oliver Blume has called on the European Union to reconsider its proposed tariffs on China-manufactured electric vehicles, suggesting that incentives be provided for investments made within Europe. In an interview with the Sunday paper Bild am Sonntag, Blume stated, “Instead of punitive tariffs, the focus should be on recognizing mutual investments. Those who invest, generate jobs, and collaborate with local firms should receive benefits regarding tariffs.”
The EU is moving forward with plans to implement tariffs on electric vehicles produced in China, as announced by the EU executive last Friday. This decision is being made despite opposition from Germany—Europe’s largest economy—and major German carmakers, revealing a growing divide within the bloc concerning its most significant trade disagreement with China in the last ten years.
The proposed tariffs, which could reach as high as 45%, are expected to impose billions in additional costs on carmakers importing vehicles into the EU. These duties are slated to be effective for five years, starting next month. The European Commission, which governs trade policy for the EU, has justified the tariffs as a countermeasure against what it views as unfair subsidies provided by China to its electric vehicle manufacturers. The Commission also mentioned that discussions with Beijing would continue, even as the tariffs are being implemented.
Volkswagen’s Blume has expressed concerns that retaliatory actions from China could adversely affect European carmakers, emphasizing the importance of balancing trade actions to prevent further strain on EU-China relations.