(Bloomberg) — Germany remains skeptical about the European Union’s tariffs on imported electric vehicles made in China and is still hoping for a negotiated solution ahead of Friday’s vote among member states.
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Germany has not yet decided how it will vote on introducing tariffs of up to 45%, Joerg Kukies, Chancellor Olaf Scholz’s chief economic adviser, said in an interview with Bloomberg TV on Tuesday. The European Commission, the EU’s executive branch, proposed the tariffs after a study found that China is unfairly subsidizing its EV industry.
“We are highly integrated into global supply chains, so a priori we don’t think tariffs are a good idea,” Kukies said, emphasizing that German automakers “still export a lot to China.”
“A negotiated solution would certainly be preferable to imposing tariffs, no matter how calibrated,” he added.
European officials are confident the bloc has the numbers to approve the tariffs, even as Germany has pushed for a deal with Beijing, Bloomberg reported last week. However, they remain cautious about making firm predictions, after Spanish Prime Minister Pedro Sanchez also spoke out against the tariffs.
Kukies told Bloomberg TV that Germany is evaluating the Commission’s tariff proposal, while discussions between relevant ministries in Berlin on a unified position are ongoing and should be completed by Thursday.
“We see that there are more and more skeptical voices due to the way the structure of the proposal is put together,” said Kukies. “But again, this is a vote that will take place on Friday.”
The EU and China are seeking a compromise that would include a mechanism to control prices and export volumes instead of tariffs.
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