Between Trade Disputes and Strategic Decisions: The EU's Struggle for Fair Trade Conditions

The European Union has decided to impose import tariffs of up to 45% on electric vehicles from China, according to recent statements by the European Commission. Despite its relentless determination to counter Beijing's unfair subsidies, the Commission remains open to negotiations with the Chinese government to find alternative solutions. The background to this decision is a comprehensive, year-long investigation that suggested implementing these measures for the next five years. Interestingly, the tariffs vary depending on the manufacturer. For example, Tesla is set to face tariffs of just under 8%, while companies like SAIC, which were not sufficiently cooperative, could face tariffs of up to 35%. The issue has sparked a heated debate within the EU, with ten member states supporting the tariffs, five opposing them, and 12 abstaining. To reject the proposal, a qualified majority of 15 member states would have been required. Particularly noteworthy is Germany's opposition, as a major car producer, voting against the planned measures. Leading German automakers such as BMW's CEO Oliver Zipse and representatives from Mercedes-Benz and Volkswagen also expressed their criticism, describing the decision as a 'fatal signal', 'mistake', and 'wrong approach'. The EU's stance towards China has hardened increasingly over the past five years, viewing Beijing as both a partner and a systemic rival. According to the Commission, China's production capacity of three million electric vehicles annually is double that of the European market, leading to concerns that Europe, along with the US and Canada, which already impose high tariffs, might be left as the main export market. In a counter-move, China has this year initiated its own investigations into imports of European products such as brandy and dairy products.