Germany, Sweden Lukewarm On Tariffs On Chinese Electric Cars

The leaders of Germany and Sweden expressed reservations Tuesday about possible European tariffs on Chinese electric vehicles after Washington announced huge duties on Chinese EVs

Stockholm, (UrduPoint / Pakistan Point News - 14th May, 2024) The leaders of Germany and Sweden expressed reservations Tuesday about possible European tariffs on Chinese electric vehicles after Washington announced huge duties on Chinese EVs.

Swedish Prime Minister Ulf Kristersson and German Chancellor Olaf Scholz were asked at a press conference in Stockholm whether they support the EU following the United States in slapping tariffs on Chinese electric cars.

"As far as tariffs are concerned, we are in agreement that it is a bad idea to dismantle global trade," Kristersson told reporters on the second day of Scholz's visit to Sweden.

Scholz noted that half of EVs imported from China were produced by Western manufacturers.

"There are European and North American manufacturers that succeed on the Chinese market and which sell their vehicles in China, we need to remember that," he said, stressing the importance of trade between the West and China.

Earlier, Washington announced it was hiking tariffs on $18 billion worth of imports from China, targeting strategic sectors like batteries, steel, critical minerals and electric vehicles.

The tariff rate on EVs is set to quadruple to 100 percent this year.

The European Union launched an inquiry into Chinese electric car subsidies last year, fearing that they were a threat to Europe's own vast automotive industry.

Once its probe is concluded, the EU could decide to hike tariffs on cars imported from China beyond the current 10 percent.

"We don't yet know the results of the investigation," Scholz stressed.

EU chief Ursula von der Leyen met Chinese President Xi Jinping for talks last week in France, where she said she had "made clear that the current imbalances in market access are not sustainable and need to be addressed".

"China is currently manufacturing, with massive subsidies, more than it is selling due to its own weak domestic demand. This is leading to an oversupply of Chinese subsidised goods, such as EVs and steel, that is leading to unfair trade," she said.

"Europe cannot accept such market distorting practices that could lead to de-industrialisation in Europe."

Beijing has reacted furiously to what it calls EU "protectionism", and denied there was any problem of Chinese overcapacity.