EU Tariffs On Chinese EVs Could Hobble Green Deal

BMW's CEO has warned against imposing EU import duties on electric vehicles (EVs) from Chinese automakers, saying it could upend the bloc's Green Deal industrial plan and harm German automakers that import cars made in China, Nick Carey and Christina Amann reported for Reuters.

The European Commission has launched an investigation in October into whether EVs manufactured in China were receiving distortive subsidies and warranted extra tariffs. I Photo: BYD

The European Commission (EC), which oversees trade policy in the 27-nation European Union, launched an investigation in October into whether fully-electric cars manufactured in China were receiving distortive subsidies and warranted extra tariffs.

"You could very quickly shoot yourself in the foot," CEO Oliver Zipse told reporters after the German premium automaker reported quarterly results. BMW imports Chinese-made Mini EVs and the iX3 into Europe.

Like its German rivals Volkswagen and Mercedes-Benz, BMW is heavily reliant on revenues from its Chinese business. China is BMW's second-largest market after Europe, accounting for nearly 32% of sales in the first quarter.

"We don't think that our industry needs protection," Zipse told analysts on Wednesday, adding that operating on a global basis gives major automakers an industrial advantage. "You can easily endanger that advantage by introducing import tariffs," Philip Blenkinsop and Nick Carey also reported for AP.