BYD Seal EV
Image Credit: BYD

Germany Urges ‘Political Solution’ in EU-China EV Tariff Dispute

Germany’s Economy Minister Robert Habeck met on Tuesday with China’s Commerce Minister Wang Wentao and urged a “political solution”, defending that the tariffs “ultimately harm both sides at all costs”.

“We want to avoid a trade conflict with spiraling tariffs that ultimately harms both sides at all costs. That is why my position is clear: we need a political solution,” Robert Habeck stated.

China has criticized the EU’s measures as protectionist and has threatened retaliation across several industries, escalating tensions in global trade.

In August, the market share of battery electric vehicles (BEV) in Germany stood at 13.7 per cent (27,024 units), a sharp drop of 68.8% from a year ago.

Sales of BEV models in the country have significantly declined since the German government cut incentives at the end of last year.

In the initial advisory vote, where the EU’s 27 members were asked about their position on the extra duties, Germany abstained — as initially reported by Reuters on Tuesday.

One week before the final vote takes place, if confirmed, the European Commission will propose definitive duties that will then be in effect for five years.

“It is important to me to make clear that Germany is not shying away from competition with China. On the contrary, we embrace competition – but it must be on fair terms,” Habeck added.

In an interview with China-based media outlet CGTN, Norwegian Prime Minister Jonas Gahr Støre said that Norway will not align with the European Union’s duties.

Poland, Spain, Italy and Hungary are among the countries where the manufacturers are eyeing to produce vehicles for the European markets.

Cláudio Afonso founded CARBA in early 2021 and launched the news blog EV later that year. Following a 1.5-year hiatus, he relaunched EV in April 2024. In late 2024, he also started AV, a blog dedicated to the autonomous vehicle industry.