THE European Commission on Wednesday revealed a list of protectionist duties it would levy on imports of battery electric vehicles (EVs) from China, sparking opposition and concerns from governments and businesses across Europe.

The provisional duties envisaged by the commission on the imports of EVs from China would range from 17.4% to 38.1%.

Hungarian Minister for National Economy Marton Nagy condemned the move as overly protectionist. He said in a statement that “protectionism is not the solution,” and the commission’s decision would unfairly discriminate against Chinese manufacturers and disrupt market competition, which had been vital for the European Union (EU).

Nagy pointed out the focus of the EU should be on enhancing the global competitiveness of the European EV industry, instead of imposing punitive tariffs, since such a move would stifle competition and hinder the growth of the EU market.

Volker Wissing, Germany’s federal minister for Digital and Transport, said tariffs would affect German companies and their exports. “Vehicles must become cheaper through more competition, open markets and easier accessibility in the EU, not through trade wars and market isolation,” he said on the social media platform X.

The EU’s imposition of high additional tariffs would not only diverge from the aspirations of global cooperation but could swiftly engender adverse effects in case of a trade conflict. The repercussions stemming from these actions might outweigh any potential advantages for both the European and German automotive industries, as highlighted by Hildegard Mueller, President of the German Association of the Automotive Industry, in a written interview with Xinhua.

“The fact is that we need China to solve global problems, which applies, in particular, to successfully tackling the climate crises,” Mueller said, stressing China’s role in the transition towards e-mobility and the digitalization of the global automotive industry.

BMW CEO Oliver Zipse criticized the commission’s plan as “the wrong way to go,” stating that it would damage European companies and interests. “Protectionism risks starting a spiral: Tariffs lead to new tariffs, to isolation rather than cooperation,” he said.

Other major German carmakers including Mercedes-Benz and Volkswagen also voiced their support for fair competition and free trade, reported German media Handelsblatt. Europe’s largest vehicle manufacturer Volkswagen rejected the planned tariffs, saying that “the negative effects of this decision outweigh any benefits for the European and especially the German automotive industry.”

The Swedish government wants to know whether the European Commission has exhausted other options besides tariffs, Sweden’s Minister for International Development Cooperation and Foreign Trade Johan Forssell said. “We are generally skeptical of tariffs. Someone has to pay them, and in this case, it will sooner or later be the consumers,” the Swedish TT news agency cited Forssell as saying.

The multinational carmaker Stellantis responded to the EU announcement by advocating for free and fair competition in a global business environment while opposing measures that could lead to “the fragmentation of the world.” Stellantis conveyed confidence in its competitive position in the EV market through its range of affordable EVs and collaboration with Chinese electric carmaker Leapmotor.

President of the Croatian Electric Vehicle Drivers Association, Hrvoje Prpic, expressed concerns that high tariffs would hinder European industry from keeping pace with Chinese car manufacturers, ultimately burdening end-users in Europe with increased costs.

Pavol Antalic, chairman of the Slovak-Chinese Joint Business Council, emphasized the importance of open businesses, stating that tariffs do not promote beneficial business exchanges. Antalic commended China’s technological progress in developing electric cars with superior batteries and noted the significant local interest in Chinese EVs.

Norway, a non-EU member state, declared its decision not to raise tariffs on Chinese electric cars in line with the EU. Finance Minister Trygve Slagsvold Vedum stated that such tariffs were irrelevant and undesired by the government, as reported by Norwegian national broadcaster NRK.

(Xinhua)