Mercedes CEO Urges EU to Resolve China EV Tariff Dispute Fairly

Image Credit: Reuters

Mercedes-Benz CEO Ola Källenius stated on Wednesday that the company is urging the European Union to find a fair solution that ensures a level playing field for Chinese-made electric vehicles (EVs) in Europe. He emphasized that imposing a pure tariff barrier would be the "crudest instrument," advocating instead for a more balanced approach. Källenius expressed hope that both the EU and Chinese negotiators would reach a mutually beneficial solution, noting that economies exposed to full competition tend to be the most innovative.

Last October, the EU increased tariffs on Chinese-made EVs up to 45.3%, but both Brussels and Beijing have been exploring ways to lift these tariffs, possibly through agreements on minimum prices for imported vehicles. The European Commission has shown willingness to negotiate alternatives to the tariffs, with varying duties on cars from brands like BYD, Geely, and SAIC.

These discussions come amid broader trade tensions, particularly with U.S. President Donald Trump's trade policies, which have affected relations between the U.S., EU, and China. 

Ahead of the Shanghai Auto Show, Mercedes-Benz introduced its new all-electric luxury van series, "Vision V," with some models to be produced in China. Källenius also predicted that the high-end electric vehicle segment would see significant growth over the next 2-3 years, with plug-in hybrids continuing to coexist with fully electric vehicles until at least 2030. However, like other foreign automakers, Mercedes-Benz's sales in China have been impacted by strong local competition and a weakening economy, which has affected consumer confidence.

Paraphrasing text from "Reuters" all rights reserved by the original author