WionDrive News Desk 
As the European Union inches closer to imposing tariffs on electric vehicles imported from China, German Chancellor Olaf Scholz has cautioned against the erection of trade barriers, emphasising the importance of maintaining fair and open automotive trade. The Chancellor’s remarks come amid escalating tensions between the EU and China over the latter’s alleged subsidies for its domestic electric vehicle industry.
Speaking at an event organised by Stellantis’s Opel subsidiary in Ruesselsheim, Germany, on Saturday, Scholz highlighted the benefits of the German auto industry’s business ties with China. He expressed confidence in the ability of German carmakers to compete with their Chinese counterparts, provided that trade remains “fair and free.”
“Isolation and illegal customs barriers – that ultimately just makes everything more expensive, and everyone poorer,” Scholz stated. “We do not close our markets to foreign companies because we do not want that for our companies either.”
The EU is expected to unveil tariffs targeting Chinese electric vehicles this month, following an investigation into China’s alleged subsidies for its EV sector. Beijing has signalled its readiness to retaliate with duties on EU-made cars with large engines, a move that would disproportionately impact German luxury automakers such as Mercedes-Benz, Porsche, and BMW.
Germany’s influential automotive industry has been vocal in its opposition to the proposed tariffs, arguing that their business relationships with China secure jobs at home. Former Volkswagen CEO Herbert Diess echoed these concerns earlier this month, warning that an escalating trade dispute could fuel inflation and delay the transition to a cleaner economy.
The looming tariff clash comes at a time when electric vehicle sales in Europe are slowing, prompting automakers like Volkswagen Group and Mercedes-Benz to adjust their EV rollout plans accordingly.
Amid these challenges, Scholz urged the industry to remain committed to the transition towards battery-powered vehicles, emphasising the importance of embracing progress and renewal to ensure competitiveness in the years to come.
“Doubting progress, delaying renewal and transformation – that would have bitter consequences,” Scholz cautioned. “If we do that, others will overtake us.”
As the EU and China brace for potential trade retaliation, the German Chancellor’s remarks underscore the delicate balance between protecting domestic industries and maintaining open and fair trade relationships. The resolution of this dispute will have far-reaching implications for the global automotive industry’s transition to electric mobility and the future competitiveness of the European and Chinese EV sectors.
