Chinese Automakers Urge Beijing for Tariffs on EU Vehicles

Chinese automakers are urging the Beijing government to impose retaliatory tariffs on European Union (EU) vehicles in response to recent trade measures imposed by Brussels. This move comes amid escalating tensions between the two economic powers over the automotive industry.

The European Commission's decision to restrict Chinese electric vehicle exports has sparked strong reactions from Chinese automakers. The EU plans to introduce anti-subsidy tariffs ranging up to 38.1% on Chinese electric vehicles starting in July, citing concerns that subsidies granted to Chinese manufacturers unfairly distort competition in the global market.

In a closed-door meeting organized by China's Ministry of Commerce, major Chinese automakers including SAIC and BYD, along with European counterparts such as BMW, Volkswagen (including Porsche), discussed potential countermeasures. According to reports from the state-owned Global Times, the Chinese automotive industry called for firm retaliatory actions, proposing an increase in provisional tariffs on imported European gasoline-powered cars with large-displacement engines.

The meeting underscored the gravity of the situation for both sides, with implications extending beyond bilateral trade relations. European automakers such as Mercedes-Benz, Stellantis, and Renault attended the meeting but refrained from commenting on the developments. Industry experts emphasize the need for dialogue and cooperation to prevent further escalation, recognizing the interconnectedness of the global economy, according to El Economista.

Stefan Hartung, CEO, Bosch, highlighted that the announcement of tariffs could spur negotiations between Brussels and Beijing to mitigate potential economic repercussions. The EU's increasingly protectionist stance aims to safeguard its automotive sector against what it perceives as unfair trade practices from China, driven by a production-focused economic model supported by significant state subsidies.
China's potential tariff hikes on European imports, particularly on high-displacement gasoline sedans and SUVs, indicate a strategic move to protect its domestic market interests. The Chinese government has also hinted at broader retaliatory measures, including anti-dumping investigations into European agricultural products.