Berlin (TDI): German automaker Mercedes-Benz has expressed strong reservations regarding the European Commission’s (EC) decision to impose tariffs on Chinese electric vehicles (EVs), warning that the move could result in “far-reaching negative consequences.”
The company has called for the postponement of the enforcement of these measures, following a key vote by the European Union (EU) on the issue.
In a statement, Mercedes-Benz underscored its preference for liberal trade regulations grounded in World Trade Organization (WTO) rules.
The automaker advocated for more time to allow for dialogue and negotiations, which it believes could lead to a mutually beneficial solution.
“While certain EU countries have sought to boost Chinese investment, the tariffs being pursued by the EC risk sending the wrong signal,” the statement read.
“This will only complicate efforts to expand trade and economic cooperation.”
The EU vote, held on Friday, saw member states debating whether to impose a five-year countervailing duty on Chinese EVs.
The EC’s proposal to levy tariffs on imports of battery electric vehicles from China was met with sufficient support for its adoption.
China’s Ministry of Commerce Voices Strong Opposition
China’s Ministry of Commerce (MOFCOM) voiced strong opposition to the EU’s decision, describing the move as a “protectionist practice” that is both “unfair” and “non-compliant.”
MOFCOM stated that negotiations between China and the EU would continue from October 7, in an attempt to resolve the dispute.
The China Chamber of Commerce to the EU also echoed calls for delaying the implementation of the tariffs, emphasizing the need for resolving trade tensions through consultation.
Also Read: EU to Impose Tariffs Up to 45% on Chinese EVs
The chamber expressed deep disappointment at the vote’s outcome and frustration over what it perceives as protectionist measures by the EU.
Mercedes-Benz, in its statement, highlighted concerns over the long-term impacts of countervailing duties, stating that such actions could undermine the competitiveness of the industry.
“Free trade and fair competition are the cornerstones of prosperity, growth, and innovation. Any measures that disrupt the WTO-based trade order should be avoided,” the company asserted.
Also Read: BMW Presses Germany Against Chinese EVs Tariffs
Germany, the largest economy in the EU, voted against the proposal, with BMW CEO Oliver Zipse calling the decision a “fatal signal for the European automotive industry.”
Zipse stressed the importance of reaching a quick settlement between the EC and China to prevent a potentially harmful trade conflict.
“The fact that Germany opposed the tariffs sends an important message and raises the chances of a negotiated settlement,” he remarked.
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