Italian Industry Minister Adolfo Urso has called for the European Union to impose tariffs on Chinese products, following the example set by the United States. His remarks highlight growing concerns about the impact of Chinese imports on European industries, particularly in the automotive sector.
Earlier this month, U.S. President Joe Biden announced significant tariff increases on various Chinese imports, including electric vehicle (EV) batteries, computer chips, and medical products. Biden’s decision includes maintaining tariffs introduced by former President Donald Trump and introducing new measures, such as quadrupling duties on electric vehicles to over 100% and doubling semiconductor tariffs to 50%.
Protecting European industry
Urso, speaking at a business conference, emphasised the need for the EU to adopt similar measures to protect its industries. “Much higher tariffs against Chinese products are inevitable if we do not want the European industry to be wiped out,” he stated. Urso, a member of the right-wing Brothers of Italy party, warned that without protective measures, the European industrial sector could suffer significant damage.
Impact on the automotive sector
The automotive sector is a particular area of concern for Urso. He noted that the steep increase in U.S. tariffs might lead China to redirect its exports towards Europe, thereby threatening the competitiveness of the European automotive industry. This shift could exacerbate existing challenges faced by European car manufacturers, including high production costs and competition from cheaper imports.
Call for a stronger industrial policy
Urso’s comments come as the European Union prepares for European Parliament elections next month. He urged the EU to adopt a stronger industrial policy to safeguard its industries against the influx of cheaper Chinese products. “We need a robust industrial policy to ensure the survival and growth of our industries,” Urso said. His call to action reflects a broader sentiment among European leaders who are increasingly wary of the economic impact of Chinese imports.
Balancing trade and industry
Urso’s call for tariffs highlights the ongoing debate within the EU about how best to balance free trade with the protection of domestic industries. While free trade advocates argue that tariffs could lead to retaliatory measures and higher prices for consumers, proponents of protectionist policies contend that tariffs are necessary to level the playing field and prevent unfair competition from countries with lower production costs.
Future steps for the EU
The EU has yet to announce any concrete plans to impose tariffs on Chinese products, but Urso’s comments suggest that discussions are ongoing. The bloc faces the challenge of crafting policies that protect its industries without triggering a trade war with China, which could have far-reaching economic consequences.
Adolfo Urso’s appeal for the EU to follow the U.S. in imposing tariffs on Chinese products underscores the growing concerns about the impact of Chinese imports on European industries. His focus on the automotive sector highlights the specific challenges faced by this key industry in Europe. As the EU approaches critical elections, the debate over how to protect domestic industries while maintaining healthy trade relations with China is likely to intensify. The decisions made in the coming months will have significant implications for the future of European industry and its ability to compete on the global stage.