German Chancellor Olaf Scholz and Swedish Prime Minister Ulf Kristersson have stressed the importance of preserving global trade and avoiding a trade war as the European Union (EU) considers imposing import duties on electric vehicles from China. This comes after the United States recently raised tariffs on Chinese EVs, sparking concerns over the potential impact.
Kristersson argued against dismantling global trade, stating that while a level playing field is necessary, blocking each other's products is not the solution. Scholz echoed these sentiments, emphasizing the EU's trade relationships and the risks of disrupting them.
Their comments were made during a joint news conference in Stockholm. They follow President Joe Biden's move to significantly increase tariffs on Chinese electric vehicles, citing concerns about their potential threats. The EU's executive arm, the European Commission, has initiated an investigation to determine if Chinese battery-powered cars benefit from subsidies that could justify additional tariffs.
Scholz mentioned that while he had not yet reviewed the commission's findings, about half of the electric vehicles imported from China to the EU are produced by western brands. This distinction, he suggested, could influence the EU's decision-making process, especially considering the successful sales of European-made vehicles in China by European and some North American manufacturers.
The German chancellor also highlighted the importance of Germany's automobile industry and its business ties with China, which contribute to job creation domestically. The commission's investigation, launched in October, could lead to the introduction of provisional tariffs by July, with definitive duties potentially taking effect by November.