Earth Science News
TRADE WARS
Germany warns of 'trade war' over EU's China EV tariffs
Germany warns of 'trade war' over EU's China EV tariffs
by AFP Staff Writers
Berlin (AFP) June 12, 2024

The EU's threat to hit Chinese electric cars with additional tariffs following an anti-subsidy probe risks a "trade war", Germany said Wednesday, as the country's auto giants warned the move would backfire.

"The European Commission's punitive tariffs hit German companies and their top products," German Transport Minister Volker Wissing said on X, formerly Twitter.

"Cars must become cheaper through more competition, open markets and significantly better business conditions in the EU, not through trade war and market isolation."

After launching an investigation last year, the EU Wednesday threatened to impose extra tariffs of up to 38 percent on Chinese electric car imports from next month, unless Brussels and Beijing can resolve the issue.

China is an important market for Germany's carmakers -- in particular Volkswagen, Europe's largest auto manufacturer -- and industry figures have lined up to warn that new tariffs could trigger retaliatory measures.

Chancellor Olaf Scholz himself in May noted that half of EVs imported from China were produced by Western manufacturers.

After the announcement, Volkswagen said it rejected the imposition of the duties.

"The negative effects of this decision outweigh any potential benefits for the European and especially the German automotive industry," a Volkswagen spokesman said in a statement.

Germany's VDA auto industry association said it was in favour of "free and fair trade".

The tariffs "will not solve the challenges" facing the industry, VDA president Hildegard Mueller said, instead calling for efforts to make Europe more attractive as a place for manufacturers.

Mercedes-Benz CEO Ola Kallenius added his voice to the concerns, saying that "what we do not need, as an exporting nation, is rising trade barriers.

"The dismantling of restrictions and expansion of fair and free trade has led to economic growth. So we shouldn't go in the other direction now."

German government spokesman Steffen Hebestreit meanwhile welcomed the fact that the European Commission had held out the prospect of resolving the dispute through talks before the tariffs provisionally come into force on July 4.

It "would be very desirable from our point of view if we can come to an amicable solution," he told a regular press conference in Berlin.

"We do not need further trade barriers but we must facilitate world trade. At the same time it must also remain.. fair."

EU to slap extra tariffs of up to 38% on Chinese electric cars
Brussels, Belgium (AFP) June 12, 2024 - The European Union threatened on Wednesday to hit Chinese electric car imports with additional tariffs of up to 38 percent from next month following an anti-subsidy probe, a move that risks triggering a trade war.

Brussels provoked China's ire by launching the probe last year in a bid to defend European manufacturers.

Hours before the announcement, Beijing warned that such a move would "harm Europe's own interests".

There is also dissent within the EU, with Germany, a major trade partner to China, saying the tariffs would harm German companies.

The European Commission has now ordered a provisional hike of tariffs on Chinese manufacturers: 17.4 percent for market major BYD, 20 percent for Geely and 38.1 percent for SAIC.

The commission said the amount depended on the level of state subsidies received by the companies.

All other electric car producers in China which had cooperated with the commission's probe but were not sampled would face an average duty of 21 percent, it added.

The remaining BEV producers which did not cooperate with the investigation would be subject to a 38.1 percent duty.

This would be on top of the current rate of 10 percent on all electric cars produced in China.

To halt the extra tariffs being levied, Beijing and Brussels must resolve the subsidies issue.

"The Commission has provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers," it said in a statement.

"Should discussions with Chinese authorities not lead to an effective solution, these provisional countervailing duties would be introduced," it added.

The tariffs will apply provisionally from July 4 and then definitively from November unless there is a qualified majority of EU states -- 15 countries representing at least 65 percent of the bloc's population -- voting against the move.

China warned prior to the announcement that the tariffs would amount to "protectionism".

"It goes against the principles of market economy and international trade rules, undermines China-EU economic and trade cooperation as well as the stability of the global automobile production and supply chain," foreign ministry spokesman Lin Jian said.

"China will take all necessary measures to firmly safeguard its legitimate rights and interests," he said.

- China warning -

Brussels launched the probe last year, with officials saying they wanted to put the brakes on what they claimed were unfair practices undercutting Europe's car manufacturers.

The EU's tariffs, while high, are lower than the United States' 100-percent rate imposed from last month on Chinese electric cars.

Not all 27 EU member states welcome the commission's move.

Germany, Hungary and Sweden already expressed reservations about the investigation and the push to slap higher duties.

"The European Commission's punitive tariffs hit German companies and their top products," German transport minister Volker Wissing wrote on X.

"Cars must become cheaper through more competition, open markets and significantly better business conditions in the EU, not through trade war and market isolation," Wissing said.

China is an important market for German car makers, while Hungary, which a month ago hosted a visit by Chinese President Xi Jinping, is clearing land for a BYD factory to be built next year. Geely owns Volvo, the Swedish-based auto manufacturer.

The Chinese Chamber of Commerce to the EU (CCCEU) warned the rates announced "will pose a serious market barrier" and slammed the "politically motivated and protectionism driven" investigation.

The CCCEU said the probe lacked "substantive and substantiated complaints from its domestic industry" since it was launched by the commission without a complaint from manufacturers.

- Retaliation -

Chinese media ramped up threats that Beijing could target EU exports, including pork and dairy products, in the weeks running before the commission's decision.

China is an important country for EU's agriculture sector and any move by Beijing could deliver acute pain to European exports.

EU exported dairy products worth around 1.7 billion euros ($1.8 billion) last year, down from nearly 2.1 billion euros in 2023.

The Asian country is the third destination for the EU's agri-food exports after Britain and the United States.

China is the world's biggest car exporter and Europe is a critical market for it.

EU imports of EVs from China mushroomed from around 57,000 in 2020 to around 437,000 in 2023, the US-based Peterson Institute for International Economics said.

Ahead of the EU's move, Germany's Kiel Institute for the World Economy said in a report that a 20 percent tariff would mean 125,000 fewer Chinese electric cars to the EU, worth almost $4 billion.

Related Links
Global Trade News

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
TRADE WARS
Chinese Premier Li to visit Australia as trade ties warm
Sydney (AFP) June 11, 2024
China's Premier Li Qiang will travel to Australia this weekend on the highest-ranking visit in seven years, Canberra announced Tuesday, as the two nations' trade ties improve despite their strategic rivalry in the Pacific. Li's four-day trip, which begins Saturday, comes after Beijing lifted most of the trade barriers it had imposed several years ago on Australian exports including coal, timber, barley, and wine. The Chinese premier's visit "represents another important step in stabilising our r ... read more

TRADE WARS
Body recovery 'called off' at Papua New Guinea landslide site

Indonesia ready to send peacekeepers, medical staff to Gaza

Foreign legion 'proud' to provide security at Paris Olympics

Aid reaches Papua New Guinea landslide site

TRADE WARS
Heat-Resistant Metal Alloys Under Study

Magnesium oxide transition insights for super-Earth exoplanets revealed

Purdue Researchers Transform 2D Metal Halide Perovskites into 1D Nanowires

DR Congo copper, cobalt miners trapped in exploitative conditions: NGOs

TRADE WARS
Extreme water rationing for Canadian city after pipe burst

Russian strikes and filthy water: A year after Ukraine dam blast

Chile's lithium dreams raise water concerns in the desert

Australia woos Solomon Islands after pro-China PM's exit

TRADE WARS
NASA Launches Second CubeSat to Study Earth's Polar Regions

Arctic warming linked to atmospheric blocking, study reveals

Norway vows to strengthen control over Arctic Svalbard

Successful satellite launch will let NASA measure polar heat loss

TRADE WARS
New Zealand scraps plan to tax livestock burps, farts

Vietnam's coffee trees stunted by drought, heat and pests

Greenhouse cultivation rapidly expanding in low- and middle-income countries

Hunting for edible plants with London's urban foragers

TRADE WARS
Indonesia volcano erupts three times, spews 5 km ash tower

Torrent of volcanic mudflow hits Philippine village

South African floods kill at least 22 people

Sri Lanka deploys army after 26 killed in monsoon storms

TRADE WARS
Development project risks uprooting Benin fishing communities

Africa could help 'decarbonise' global economy, Kenyan president tells AFP

Amnesty urges Congo industry to protect residents' rights

African tech startups cater to continent's needs

TRADE WARS
JK Rowling says regrets not speaking out sooner on trans issues

Record low level of Hong Kong's young adults want children: survey

Can we rid artificial intelligence of bias?

Amazonian chief at UN to combat traditional knowledge piracy

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.