German carmakers expressed alarm on Saturday, warning that the European Union’s recent decision to impose punitive tariffs on Chinese electric vehicles could lead to higher costs for consumers and potentially damage Germany’s automotive industry.
Thomas Peckruhn from the German Association of Motor Vehicle Trades (ZdK) voiced concern that the EU’s tariffs of up to 35.3% on battery-powered electric vehicles from China could come into effect as soon as early November, unless a compromise is reached between Brussels and Beijing.
Germany voted against these tariffs, with Peckruhn noting that such measures could adversely affect business confidence. “Punitive tariffs are not a solution for fair, global trade,” he said, emphasizing the risks for car dealers who have already invested in Chinese brands. The tariffs, according to Peckruhn, would distort competition and might provoke a counter-response from China, further impacting German exports.
German automakers, including industry giants such as Volkswagen, BMW, and Mercedes, have expressed their disapproval of the tariffs. These brands, which have invested heavily in the Chinese market, rely on strong sales in the country to maintain their position globally.
The German Association of the Automotive Industry (VDA) has also weighed in, predicting a 29% plunge in electric vehicle sales in Germany for 2024. The VDA attributes this expected decline to the discontinuation of the government’s electric car subsidy last year, which has already put pressure on sales.
Winfried Hermann, transport minister of Baden-Württemberg, home to major automakers such as Mercedes-Benz and Porsche, called the tariff measure “harmful to the climate and economically fatal,” arguing that it would only lead to higher electric car prices.
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