In Germany, VW, BMW call for negotiations to avoid EU China tariffs

After the EU vote allowing for punitive tariffs on electric vehicles from China, German carmakers Volkswagen and BMW called for a resolution to prevent a trade conflict.

Volkswagen called for a negotiated solution. "We appeal to the European Commission and the Chinese government to continue the ongoing negotiations for a political solution constructively," the company stated in a press release issued on Friday. "The joint aim must be to prevent any protective tariffs and thus avoid a trade conflict."

A negotiated solution avoiding protective tariffs remains possible until the decision's potential implementation at the end of October. Volkswagen asserted that "the planned tariffs are the wrong approach and would not improve the competitiveness of the European automotive industry."

BMW warned of negative consequences. "Today's vote is a fatal signal for the European automotive industry," said company boss Oliver Zipse. “Now a quick solution is needed between the European Commission and China to prevent a trade conflict that will ultimately only have losers.”

In a vote in Brussels, there was not a sufficient majority of EU countries against additional EU tariffs on electric cars from China, which means the commission can decide to impose duties of up to 35.3%. Germany had opposed the move.