VW CEO says China’s retaliatory measures could hurt European automakers

The CEO of German carmaker Volkswagen said the European Union should consider adjusting planned tariffs on electric vehicles made in China to take into account investments made in Europe.

Read also: Samsung India says it pays its Chennai factory workers 1.8 times more than industry average: report

“Instead of punitive tariffs, mutual investment credits should be provided. Those who invest, create jobs and work with local companies should benefit from the tariffs,” VW CEO Oliver Blume said in an interview granted to the Sunday newspaper Bild am Sonntag.

The European Union will continue imposing tariffs on electric vehicles made in China, the EU executive said on Friday, even after Germany, the bloc’s largest economy, and German automakers rejected them , revealing a disagreement over its biggest trade conflict with Beijing in a decade.

Read also: Billionaires learn from each other: Harsh Goenka shares top three success lessons he learned from Mukesh Ambani

Proposed taxes on Chinese-built electric vehicles of up to 45% would cost automakers billions of extra dollars to bring cars into the bloc and are expected to be imposed starting next month for five years.

The Commission, which oversees the bloc’s trade policy, said it would oppose what it considers unfair Chinese subsidies after a year-long anti-subsidy investigation, but it also said Friday it would continue negotiations with Beijing.

VW’s Blume told Bild am Sonntag there was a risk that retaliatory measures imposed by China could harm European carmakers.

Read also: Create your own hyper-realistic podcast with AI in minutes! How Google Audio Presentation Can Help You