Germany Votes Against EU Tariffs on Chinese Electric Vehicles

By Andreas Rinke

FRANKFURT (Reuters) – On Friday, Germany will vote against the European Union’s proposal to impose tariffs on Chinese electric vehicles, according to sources familiar with the situation.

Initially, Germany abstained from a non-binding vote in July regarding the Commission’s proposal. However, industry pressure has mounted on Chancellor Olaf Scholz to oppose the measure in the upcoming vote among EU member states.

The European Commission’s proposal requires a qualified majority of 15 EU members, representing 65% of the EU population, to vote against it for implementation to fail—setting a significant threshold.

Reports indicate that France, Greece, Italy, and Poland plan to support the tariffs, which could lead to the passage of the EU’s most significant trade measures.

A representative from the German government declined to provide comments on the matter.

The Commission argues that the tariffs are necessary to counterbalance subsidies such as cheap loans, land, and raw materials, aiming for a level playing field without excluding Chinese car manufacturers entirely, unlike the anticipated 100% U.S. tariff.

German automakers, who generated a third of their sales in China last year, oppose the tariffs. They express concerns about potential retaliatory actions and a trade conflict with a crucial trading partner.

In a joint statement, IG Metall, the influential German labor union, and employee representatives from major German automakers urged against the tariffs, stating, “We say unequivocally: tariffs are the wrong approach because they will not improve the competitiveness of the European automotive industry.”