Macron supports Chinese electric vehicle tariffs as Scholz calls for dialogue

Berlin (AFP) – French President Emmanuel Macron reaffirmed his support for European tariffs on Chinese electric vehicles during a visit to Berlin on Wednesday.

Published on: 02/10/2024 – 5:43 p.m.

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Macron previously met with Chancellor Olaf Scholz, whose government fears a trade war with China that could harm Germany’s crucial auto sector.

Brussels plans to impose additional duties of up to 36% on electric vehicles imported from China, with member states expected to vote on the issue on Friday.

The European Commission announced the tariffs in July, following the conclusion of an anti-subsidy investigation that found China was providing unfair state aid to automakers.

“I support the European Commission on this point,” Macron said when asked about the issue at the Berlin Global Dialogue.

European manufacturers had to “compete with certain car manufacturers producing in China with an existing advantage,” Macron said.

Chinese subsidies have introduced a “bias” into the market, Macron said.

If a level playing field is not re-established with Chinese manufacturers in this area, he warned it could jeopardize hopes of “producing and preserving your industrial footprint in Europe”.

Speaking earlier Wednesday, Scholz argued for maintaining an open dialogue with China on the issue of electric cars.

“We must protect our economy against unfair trade practices,” Scholz said in a speech to the German Federal Association of Wholesale, Foreign Trade and Services.

Scholz also echoed the need for a level playing field, but said the EU’s response “must not lead to us hurting ourselves.”

“That is why negotiations with Beijing on electric vehicles must continue,” Scholz said, adding that action was needed where China was “actually harming our economy, such as in the case of steel.”

Leading German carmakers have come out in force against EU tariffs, fearing retaliation from China that could hurt their sales in the key Asian market.

Speaking at the same event as Macron in Berlin, Mercedes-Benz boss Ola Kallenius said tariffs were a “rude instrument”.

And BMW CEO Oliver Zipse said in a statement that the German government should “vote against the introduction of additional customs duties.”

Import taxes “hurt globally active businesses in this country and could cause a trade conflict that no one would benefit from,” Zipse said.