BMW urges Germany to vote against EU tariffs on electric vehicles made in China, fearing trade dispute

BMW is urging Germany to vote against the imposing of higher tariffs by the European Union (EU) upon electric vehicles made in China as the German manufacturer hopes to avoid a trade dispute with their most important market, reported Bloomberg.

“Additional tariffs harm globally active companies in this country and could provoke a trade dispute from which no one gains. The German government should therefore take a clear position,” BMW CEO Oliver Zipse was quoted as saying.

Member states of the EU are preparing to vote on tariffs to be imposed on China-made EVs that will be as high as 45%, and it would require 15 member states representing 65% of the EU’s population to successfully block the tariffs from being put in place, Bloomberg wrote.

Earlier this week, German officials have indicated that the German government plans to abstain, rather than vote against the tariffs, and the German government also expects “a significant number of EU member states” to join in its abstention which could cause difficulty in blocking the tariffs being implemented, the report wrote.

The European Commission is due to vote this week on a proposed additional tariffs on top of the standard 10% import tariff on EVs made in China and imported into the EU.

The European Commission proposed the additional tariffs after a probe found that China significantly subsidises its electric vehicle industry, though German OEMs have rejected to proposal as it could threaten their sales in China should the country retaliate with countermeasures.

Last month, the European Union and China have agreed to resolve disputes over the EU’s decision to impose additional tariffs on EVs made in China. A spokesperson for China’s ministry of commerce said Chinese EV makers have pledged to sell their EVs in the EU above minimum prices.

At present, BMW Group products which are made in China include the J01-generation MINI Cooper SE electric hatchback, which is built in conjunction with GWM at a new plant in Zhangjiagang, China. Also made in China is the BMW iX3, which is produced for global markets from its joint venture plant in Shenyang.

Looking to sell your car? Sell it with Carro.