BERLIN/KIEL (dpa-AFX) - Following the US tariff increase on electric cars and other products from China, the Federation of German Industries (BDI) has pointed out possible consequences for the domestic market. "Germany and the EU should now take great care to ensure that the EU internal market does not become a buffer for Chinese overcapacities that are thwarted on the US market. Unfortunately, this has been the experience of the international steel market in recent years," said Wolfgang Niedermark from the BDI's Executive Board on Wednesday.

According to Niedermark, China must be seen as a state-controlled economy. He emphasized that the EU has protective instruments against goods from third countries that are offered at distorted prices. "If facts of dumping or subsidization are proven under these rules, these instruments should be applied consistently," demanded the BDI representative.

According to a simulation calculation by the Kiel Institute for the World Economy (IfW), the imposed US tariffs in themselves have hardly any impact on trade between the EU and China. "In particular, the number of electric cars imported by the USA from China is so small, only 12,000 per year, that a detour to other target markets is practically unnoticeable," reported the IfW. Alternative markets are therefore likely to be Canada and Mexico in particular. However, it is worrying that the tariffs could cause a very unfavorable spiral of reactions and counter-reactions for Germany and the EU, said IfW trade researcher Julian Hinz./vni/DP/men