Heavy taxes on Chinese vehicles imported into Europe: Germany in panic

The decision of the European Union to heavily tax Chinese vehicles imported into the Old Continent in the future does not suit the German manufacturers who have made it known.

The decision of the European Commission which intends to very significantly increase customs duties for vehicles manufactured in China imported into Europe, ensuring “that the value chains of electric vehicles in China benefit from unfair subsidies”, worries certain member countries. Mainly Germany, for which China has become a very important market for its production of electric cars and who now fears reprisals from the Middle Kingdom. Thus, the spokesperson for the German government, Steffen Hebestreit, tried to keep things simple this Wednesday by declaring in particular:It would be very desirable to reach a consensual solutionbecause we do not need additional barriers to trade, but rather to facilitate global trade.”

From single to triple?

Currently at 10%, customs duties on vehicles imported from China into Europe could thus be subject to new compensatory rates (with different percentages applied depending on the groups) from the start of next month. A “sanction” which puts the German automobile industry in panic, right up to the top of the state, who intends to make his European comrades listen to reason: These taxes “hit German companies and their excellent products”, lamented in this regard on Wednesday the German Minister of Transport, Volker Wissing, joined by the CEO of Mercedes, Ola Källenius about these trade barriers, which according to him are “not what we need, as an exporting country”. Let us remember that this dissonant voice of the Germans (which is not, however, the only European country to want to avoid excessively heavy taxes against the importation of Chinese vehicles), makes obviously echoing the 36% of volume sales represented by Volkswagen, BMW and Mercedes in China. “The negative effects of this decision outweigh the potential benefits for the European and particularly German automobile industry,” Volkswagen added.