Federal government has reservations against fines
The EU Commission imposed provisional tariffs on Chinese electric cars in early July. Now, member states need to submit their statements. Germany is expected to abstain. The fear: The overall economy could be heavily affected.
The German government is expected to abstain during the EU internal vote on provisional tariffs on Chinese electric cars. The German government will submit its statement on the introduction of provisional compensatory tariffs on Monday in a timely manner, according to an insider.
Although the German position is not yet finalized, it is leaning towards abstention because the investigation results of the EU Commission are still ongoing. Negotiations between the Commission and the Chinese government are also ongoing. A second insider confirmed that it is leaning towards abstention.
The German government has reservations about the tariffs because it is feared that German automakers and the economy as a whole could suffer under the consequences or countermeasures of China. It is hoped that the EU Commission will reach an agreement with China in the coming months.
The EU Commission imposed provisional tariffs on Chinese electric cars in early July, accusing the People's Republic of unfair competitive advantages through high subsidies. However, these tariffs, effective from July 5, are only provisional and last for up to four months.
A decision must be made within this period on whether the tariffs will be extended for up to five years. This decision is scheduled for the fall. The EU member states must submit their statements on the provisional tariffs in the so-called consultation procedure by the coming week.
This consultation is not binding on the EU Commission and does not determine how the member states will behave in a later vote on a permanent tariff.
The EU Member States, including Germany, have been asked to submit their statements regarding the provisional tariffs on Chinese electric cars, as per the EU Commission's request. Despite potential economic consequences, some European nations, like Germany, are leaning towards abstaining from the vote, such as in the case of Germany's expected position.
