- The German automotive sector condemned the recent tariffs, calling them harmful to business and employment.
The German government on Wednesday urged the EU and China to reach a compromise, a day after Brussels announced additional tariffs on Chinese-made electric cars.
“Both Brussels and Beijing are being urged to find sustainable and creative solutions through ongoing dialogue,” said Stefan Habestreit, a spokesman for Chancellor Olaf Scholz, in Europe's biggest economy, whose key auto industry is beset by problems. .
Germany voted against additional tariffs, measures which Habestreit said would “naturally draw a reaction from the Chinese side”.
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“These kinds of trade disputes are not something we should even aspire to,” he told a news conference.
New tariffs of up to 35 percent were announced by the European Commission on Tuesday after an EU investigation found that Chinese state subsidies were undermining European automakers.
Beijing said on Wednesday it had filed a complaint with the World Trade Organization, with China's commerce ministry vowing to “take all necessary measures to firmly protect the legitimate rights and interests of Chinese companies.”
Negotiations are ongoing between the EU and China and the tariffs could be lifted if both sides reach a satisfactory agreement.
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On Tuesday, Germany's Automotive Industry Association, which represents car giants such as Volkswagen, BMW and Mercedes, called the tariffs “a step backward for free global trade and thus a step back for prosperity, job protection and growth in Europe.” told.
Volkswagen warned on Wednesday that “painful” cuts were on the way as it announced a fall in third-quarter profits due to falling sales in China, its biggest market.
At least three German VW plants are at risk and thousands of jobs at the namesake brand could be lost, labor representatives said this week.
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First publication date: 02 November 2024, 10:02 am IST