EU's new tariffs may trigger global trade conflict, says German VDA

The European Union's announcement that it will temporarily impose high additional tariffs of up to 38.1 percent on electric cars from China from July is a further step away from global cooperation and will further increase the risk of a global trade conflict, said the German Association of the Automotive Industry (VDA) on June 12.

Hildegard Muller, VDA president, said in an official announcement that: "It is also a fact that countervailing duties on e-cars imported from China are not suitable for strengthening the competitiveness of the European automotive industry."

"The potential damage that could be caused by the measures now announced may be greater than the potential benefits for the European - and in particular the German - automotive industry," Muller said, adding it would be expedient if both sides manage to overcome the existing challenges through dialogue and primarily strive for partnership-based formats and solutions.

"The fact is that we need China to solve global problems. This also applies in particular to successfully tackling the climate crisis. China plays a decisive role in a successful transformation towards electromobility and digitalization - a trade conflict would also jeopardize this transformation," she said.

"Overall, the measures now announced by the EU will not solve the challenges facing the European and German automotive industry; on the contrary, the EU Commission's intention to impose countervailing duties could quickly have a negative impact in the event of a trade conflict," she added.