Scholz urges movement from China in electric vehicle tariff dispute

German Chancellor Olaf Scholz speaks at the Day of German Industry 2024 organized by the Federation of German Industries (BDI). The BDI's two-day future conference with representatives from business, politics, science and society is being held this year under the motto "Cohesion in polarized worlds". Bernd von Jutrczenka/dpa

German Chancellor Olaf Scholz has called for movement from China in the dispute over potential European Union tariffs on Chinese electric vehicles.

Scholz welcomed the European Commission's offer of negotiations with China, but warned there is little time left before the threatened punitive tariffs could begin taking effect on July 4.

"It is clear that we also need serious movement and progress from the Chinese side at this point," Scholz said.

The European Commission has accused Beijing of unfairly subsidizing battery-powered vehicles, and published plans for punitive tariffs on electric vehicle imports from China in mid June.

Germany's large and influential automotive industry has expressed serious concerns about the tariffs, in part because of fears that China could retaliate with tariffs on German auto exports to the lucrative Chinese market.

The tariffs, which could be as high as 38.1%, could be imposed retroactively from July 4 if a deal is not reached, although a final determination is not due until early November.

Both sides announced on Saturday that they are interested in negotiations.

German Chancellor Olaf Scholz speaks at the Day of German Industry 2024 organized by the Federation of German Industries (BDI). The BDI's two-day future conference with representatives from business, politics, science and society is being held this year under the motto "Cohesion in polarized worlds". Bernd von Jutrczenka/dpa

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