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Several European carmakers on Wednesday expressed opposition to the move by the European Commission (EC) to impose countervailing tariffs on Chinese electric vehicles (EVs), saying such a protectionist move will only harm the European auto industry.

The strong rejection from European auto groups underscored the unpopularity of the EC's move, as well as the politicization of trade issues by the executive body of the EU, given the opposition comes from an industry that the EC claims to protect with the additional tariffs.

Following weeks of speculation and postponed deadlines, the EC announced that it would slap extra tariffs of up to 38.1 percent on imported Chinese EVs, starting in July, as a result of a so-called anti-subsidy investigation into Chinese EV makers launched in October 2023.

"Countervailing duties are generally not suitable for strengthening the competitiveness of the European automotive industry in the long term - we reject them," Volkswagen Group said in a statement to the Global Times on Wednesday.

The Germany-based group further said that the timing of the EC's decision is detrimental to the current weak demand for battery electric vehicles in Germany and Europe. "The negative effects of this decision outweigh any potential benefits for the European and especially the German automotive industry," the statement said.

"This decision for additional import duties is the wrong way to go. The EU Commission is thus harming European companies and European interests," Oliver Zipse, CEO of BMW Group, was quoted in a statement as saying. "Protectionism risks starting a spiral: Tariffs lead to new tariffs, to isolation rather than cooperation."

Zipse further stated that from BMW's point of view, protectionist measures, such as the introduction of import duties, do not contribute to successful competition in international markets, according to the statement shared with the Global Times on Wednesday.

Another German carmaker, Mercedes-Benz, also said that it always supports liberal trade regulations based on WTO rules. "If a general trend toward protectionism gains a foothold, this has negative economic consequences for all stakeholders involved," the company said in a statement sent to the Global Times on Wednesday.

Meanwhile, the European Union Chamber of Commerce in China said that if tariffs are to be levied, it should be done proportionately and in a manner that is both transparent and consistent with WTO rules.

"It is also important to note that the EU's EV anti-subsidies investigation is just entering its provisional stage and that definitive measures, if taken, will only be confirmed at the end of the year," the chamber said in a statement sent to the Global Times on Wednesday.

Still, following the European Commission's announcement, shares of European carmakers that rely heavily on the Chinese market fell sharply, amid concerns about potential countermeasures from China, according to media reports.

Chinese ministries, industry bodies and business groups on Wednesday sharply criticized the EC's decision and vowed to take all necessary measures to defend the interests of Chinese companies.

"The European side ignored facts and WTO rules, ignored China's repeated strong objections, ignored the calls and dissuasion of multiple EU member states' governments and industries, and stubbornly insisted on its own way. China is highly concerned and strongly dissatisfied with this. The Chinese industry is deeply disappointed and firmly opposed to this," a spokesperson for the Chinese Ministry of Commerce said on Wednesday.

The spokesperson said that China will closely monitor developments in the EU, and will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies.

While it remains to be seen what China will do to defend Chinese firms' interests, industry sources have called for various measures recently. In an exclusive interview with the Global Times last month, a Chinese auto industry insider suggested that China should consider raising the temporary tariff rate on imported cars with large-displacement engines - a move that would have a major impact on imported cars from Europe. Sources also told the Global Times that relevant Chinese industries are collecting evidence, as they plan to request anti-dumping investigations into certain EU pork and dairy products.

Global Times