Germany's Scholz "not convinced" about tariffs on Chinese EVs -Wirtschaftswoche

BERLIN (Reuters) – German Chancellor Olaf Scholz expressed his skepticism about the necessity of imposing tariffs on Chinese electric vehicles (EV), according to an interview with business weekly Wirtschaftswoche.

The European Commission is currently investigating whether punitive tariffs should be imposed to protect European Union automakers from cheaper Chinese EV imports that allegedly benefit from state subsidies.

Scholz stated in the interview published on Thursday, “I am not very convinced of this, to put it politely. Our economic model should not be based or rely on protectionism – but on the attractiveness of our products.”

He further mentioned historical precedents when addressing concerns about Japanese automakers entering the German market in the 1980s and South Korean companies in the 1990s. Despite these challenges, he highlighted that Germany managed to maintain its position.

The Chancellor’s remarks reflect his stance against protectionism and his emphasis on German products’ competitiveness rather than artificial trade barriers.

It is crucial to note that the European Commission’s investigation aims to address the alleged unfair advantage that Chinese EV imports may have due to state subsidies, which may distort the market and harm European automakers.

The decision on whether tariffs will be imposed is still pending and will be based on the European Commission’s findings.

By expressing his reservations, Scholz joins the debate surrounding the protection of domestic industries and the balance between free trade and safeguarding European markets.

Overall, Scholz’s remarks demonstrate his commitment to an economic model that relies on the competitiveness and quality of German products rather than protectionist measures.

It remains to be seen how the European Commission will proceed with its investigation and whether any tariffs will be imposed.

(Reporting by Maria Martinez; Editing by Kirsten Donovan)