Germany's bid to prevent the European Union from imposing tariffs on Chinese electric vehicles is likely to fail ahead of a decisive vote, which could spark a trade conflict with China.
Giovanna Coi, Douglas Busvine, and Koen Verhelst report for POLITICO.
In short:
- The EU is preparing tariffs on Chinese electric vehicles to counter government subsidies, aiming to give European manufacturers time to adjust.
- Germany is opposed but needs a supermajority to block the tariffs in a qualified majority vote, which is difficult to achieve.
- If the tariffs pass, China has threatened to retaliate by targeting European goods like autos and food products.
Key quote:
"Better no action than quick fixes."
— Robert Habeck, Germany’s Economy Minister.
Why this matters:
The looming tariffs could lead to a damaging trade war with China, affecting not only the auto industry but also other sectors reliant on exports. Economic retaliation may increase costs for consumers and slow down the shift to electric vehicles.
Read more: China and the EU discuss potential tariff hikes on Chinese electric vehicles
