Germany to negotiate with China before soaring taxes on electric cars

Germany to negotiate with China before soaring taxes on electric cars
Germany to negotiate with China before soaring taxes on electric cars

Germany is talking with Beijing to find common ground to ease customs duties on Chinese electric cars. Our European neighbors are worried about the reprisals that their car manufacturers risk suffering.

Germany wants to negotiate with China

The European Commission wants to strongly increase customs duties on electric cars from China. The increase could take effect on July 4, after a final period of discussions.

For its part, Beijing is already working on a commercial response. But Berlin does not want to do so. German officials have begun negotiations with China to try to find a compromise before the new tax takes effect.

According to Bloomberg confidential discussions are currently taking place. Many European car manufacturers have expressed concern over the European Commission’s decision. To put it simply, the German auto industry stands to lose if China were to impose its own protectionist measures. And the country has already said it is ready to do so.

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China is proposing to tax imported cars at 25%. Particularly those equipped with “ big engines “. Robert Habeck, the German Minister of Economy, expressed his desire to defuse the situation. He sees the present moment as “ an opportunity to negotiate a resolution that could prevent an economically damaging cycle of tariffs ».

The minister is due to travel to China next week to meet with Chinese officials. He is pointing out that ” discussions with Beijing are led by the European Commission ” and “ as usual, the German government is in close contact with the institution “. With this move, Germany is perhaps gambling on the future of its automobile industry.

Carlos Tavares asks for stability

At the same time, Carlos Tavares, the boss of Stellantis, asked “ stability in regulations “. Present on the occasion of a conference organized in Auburn Hills, Michigan, in the United States, Mr. Tavares calls for a regulatory framework and a clear course from the major nations, implying the European Union and the UNITED STATES.

« We are here to offer clean, safe and cheap mobility, that’s our mission », explained Carlos Tavares. « If you give me stability, I will find the solutions that you think are good for society. We conform to a race within a framework that you determine” “, he clarified.

Whatever decision is made, he therefore calls for a clear guideline. The Franco-Italian-American giant, allied with the Chinese manufacturer Leapmotor, is preparing to deliver its first Chinese cars to Europe. With the implementation of new customs duties, the equation is no longer quite the same for the manufacturer.

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