Germany in Talks with Beijing to Ease Tariffs on Chinese Electric Cars
Germany Seeks Negotiations with China
The European Commission is pushing for an increase in tariffs on electric cars from China. The increase could come into effect on July 4, following a final round of discussions.
Meanwhile, Beijing is already preparing a commercial response. However, Berlin is looking to negotiate. German officials have initiated talks with China to find a compromise before the new tax is implemented.
According to Bloomberg, confidential discussions are currently taking place. Many European car manufacturers have expressed concerns over the European Commission’s decision. Simply put, the German automotive industry stands to lose if China were to impose its own protectionist measures, which the country has indicated it is prepared to do.
China has proposed a 25% tax on imported cars, particularly those with “large engines.” German Economy Minister Robert Habeck has expressed a desire to defuse the situation. He sees it as “an opportunity to negotiate a resolution that could prevent a harmful cycle of customs duties on the economy.”
The minister is set to visit China next week to meet with Chinese officials. He clarified that “discussions with Beijing are being led by the European Commission” and that “as usual, the German government is in close contact with the institution.” With this visit, Germany may be playing the future of its automotive industry.
Carlos Tavares Calls for Stability
Meanwhile, Carlos Tavares, the head of Stellantis, has called for “regulatory stability.” Speaking at a conference in Auburn Hills, Michigan, USA, Tavares emphasized the need for clear regulatory frameworks from major nations, including the European Union and the United States.
“We are here to offer clean, safe, and affordable mobility, that’s our mission,” explained Carlos Tavares. “If you give me stability, I will find the solutions that you believe are good for society. We comply with a race within a framework that you determine,” he added.
Regardless of the decision made, he demands a clear guideline. The Franco-Italian-American giant, in partnership with Chinese manufacturer Leapmotor, is preparing to deliver its first Chinese cars in Europe. With the introduction of new tariffs, the equation is no longer the same for the manufacturer.