BERLIN (dpa-AFX) - In the dispute over EU punitive tariffs on electric cars from China, the car industry is putting pressure on the German government and demanding resistance from Berlin. In the traffic light coalition, the FDP-led ministries of finance and transport are pushing for a German "no" in Brussels. Federal Chancellor Olaf Scholz (SPD) has also expressed criticism of possible punitive tariffs. A decisive vote in Brussels is scheduled for Friday. It remains to be seen how the German government will react.

The EU Commission accuses China of heavily subsidizing the entire value chain for electric cars and thus distorting the market. The authority therefore wants to introduce additional tariffs, which in some cases are expected to amount to more than 35 percent. However, the 27 EU member states have a say in the decision. Possible German positions are a "no" and an abstention. According to the EU Commission, Chinese electric cars are normally around 20 percent cheaper than models manufactured in the EU.

Car industry warns of global trade conflict

"A vote by the EU states to impose high additional tariffs on e-cars from China from the end of October would be a further step away from global cooperation," said Hildegard Müller, President of the German Association of the Automotive Industry, to the German Press Agency. "This measure would further increase the risk of a global trade conflict."

Müller called for the German government to take a clear stance against the punitive tariffs. Abstention is not an option.

BMW CEO Oliver Zipse also called for the German government to vote against the punitive tariffs. Prosperity in Germany depends on open markets and free trade, he said. Additional tariffs would harm globally active German companies and could "provoke a trade conflict that ultimately only knows losers." VW is also urging the German government in Brussels to say no. A spokesperson told the German Press Agency: "The planned tariffs are the wrong approach, they will not improve the competitiveness of the European automotive industry."

Chancellor relies on negotiations with China

Chancellor Scholz also voiced his concerns. "Of course we have to protect our economy from unfair trade practices," the SPD politician emphasized in Berlin. It is about a level playing field. "However, our reaction as the EU must not lead to us damaging ourselves. That is why the negotiations with China on electric vehicles must continue."

Federal Economics Minister Robert Habeck (Greens) had recently repeatedly warned against a customs dispute with China and said that he was relying on a political solution with the People's Republic.

The topic is also likely to have played a role in a meeting with French President Emmanuel Macron. In the past, Macron had generally spoken positively about punitive measures against China's e-cars. Scholz went on to say that action must be taken where cheap Chinese imports were actually harming the economy, for example in the case of steel. The World Trade Organization and its principles should be respected more.

Wissing: e-cars must be offered at competitive prices

Transport Minister Volker Wissing warned against "market barriers". These were not a suitable instrument for strengthening the competitiveness of the German or European automotive industry, the FDP politician told the German Press Agency. "The future viability of the automotive industry will be measured by whether electric cars can be offered at a competitive price." The finance ministry of department head Christian Lindner (FDP) is in favor of Germany voting no, according to sources./wim/DP/ngu