Impose tariffs on electric vehicles in China?

According to a report on the website of German Business Daily on September 14th, Ursula von der Leyen has raised concerns about a trade conflict with China in Germany. The president of the European Commission announced that he would launch a countervailing investigation on electric vehicles in China, which may lead to the imposition of tariffs on imported electric vehicles.

It is reported that German economic circles and the federal government are now warning that China may take countermeasures and cause collateral losses. Relevant people realize the challenge of electric vehicles in China. However, they are also worried that the escalation of the conflict will eventually bring more harm to Europe.

At present, the German Federal Government is still internally coordinating how to respond to Ursula von der Leyen's plan. Minister of Economy and Climate Protection Robert Chabek (Green Party) welcomed this, but according to politicians, there is no consensus on his views.

It is said that the Prime Minister's Office is especially skeptical about Ursula von der Leyen's plan. The Prime Minister's Office believes that besides the possible countermeasures taken by China, it is also necessary to clarify who will be affected by the potential punitive tariffs against China. Some of the electric vehicles exported by China to the EU are produced by Tesla Corporation of the United States.

In addition, EU countries must also reach a consensus. Of course, there are different interests among member States. For example, the French automobile industry has been deeply involved in the domestic market, but other EU countries have benefited less from the measures against China automobiles and are more affected by the potential countermeasures.

The economic community has also issued a clearer warning. Volker Treier, head of foreign trade at the German Chamber of Commerce and Industry, said: "In view of the current multiple crises, the new trade conflicts will not help us get rid of the current predicament at all."

According to the website of Spanish newspaper El Pais reported on September 14th, European Commission President Ursula von der Leyen recently announced that he would launch a countervailing investigation on electric vehicles in China. However, considering that the EU is in urgent need of new economical cars, curbing competition may be counterproductive. Raising tariffs will not help, but may become an obstacle.

Competition from China may depress prices and help the EU achieve the goal of zero emission of new cars by 2035.

Franç ois Chimitz, an analyst at Mercator China Institute, said that the EU is unlikely to think that imposing tariffs on electric vehicles or batteries is in its economic interests, especially considering China's de facto monopoly in some supply chains. In addition, any sanctions will undoubtedly be countered, which will put export leaders such as BMW and Volkswagen in a difficult position.

China's car companies may be a good medicine to help Europe make a drastic shift to electric vehicles. Abandoning the internal combustion engine requires companies such as Volkswagen to significantly increase the sales of electric vehicles, but the high price will still "persuade" buyers. Competition from more efficient enterprises in China will help a lot.