Reuters: German car industry demands EU to waive tariffs on Chinese electric cars

German the automotive industry’s interest organization VDA urges the European Commission to waive tariffs on Chinese electric cars, reports the news agency Reuters.

According to the advocacy organization, the tariffs would harm European and US car manufacturers that export to China, and there is a risk of China’s retaliation with counter-tariffs. A counterattack would hit the German car industry, which has a lot of exports to China, hard, according to Reuters.

Wednesday’s petition is a last-minute attempt to influence the negotiations between China and the EU before the customs duties that start on Thursday.

In June, the EU decided set Punitive tariffs for electric cars coming from China, which, depending on the manufacturer, are around 17-38 percent.

However, China and the Commission have still negotiated, Reuters reports. According to the Commission, China supports in an unfair way local electric car manufacturers in many ways throughout the value chain. China denies the accusations.

Passenger cars the value of exports from Germany to China last year was more than three times higher than the value of imports from China, a German interest organization says, according to Reuters. The value of export of components was four times higher than import.

The advocacy organization’s message is that instead of tariffs, the Commission should focus on securing the supply of critical raw materials for the European electric car industry – many of which are controlled by China – as well as reducing barriers to market access and creating transparency in trade policy.

in China there has been a desire to hit back: Chinese car manufacturers already last month urged China to raise customs duties on European gasoline cars, according to the state-supported Chinese media Global Times Reuters.

Trade with China is important in Germany. About 30 percent of German automakers’ sales come from China, and Germany is clearly the largest exporter of at least 2.5-liter combustion engine cars this year, Reuters reports.

Not at all in June, it was not entirely certain how the tariffs would affect to consumer prices in Finland, but an additional cost is possible.

Customs haven’t been pushed through in Europe. In France, the issue has received support, but instead in Germany, Sweden and Hungary, it has been rejected, says The Financial Times.