Hildegard Müller, president of the German Association of the Automotive Industry (VDA), has advocated for the implementation of new tariffs against China under specific circumstances. Müller told the “Handelsblatt” that significant trade imbalances have emerged in relations with China in recent years.
She stated that “trade protection instruments” could become applicable once a certain level of competitive distortion is demonstrated, particularly in cases of proven unfair conduct. Crucially, she stressed that any such action would require the affected industries to be closely consulted, considering the impact on the European market and the risk of potential countermeasures.
An internal VDA document cited by the “Handelsblatt” goes further, classifying “WTO-compliant trade protection instruments” as not merely legitimate, but “necessary,” when facing substantiated market distortions. Furthermore, the association questioned the current effectiveness of existing European instruments. The paper suggested that where current rules “fall short,” targeted new measures should be considered, and that necessary adjustments should be made “in a timely manner.”
According to reports, German’s auto lobby is thereby consciously opening the door to additional compensatory duties on Chinese vehicles. The European Union plans to use these measures to counter distorting competitive effects. The 27 heads of state and government had already approved this initiative at their summit in Brussels. The prerequisite for implementation, however, is a formal application from a member state. This position appears to secure support for the automotive industry, with Chancellor Friedrich Merz (CDU) also having signaled a shift in policy direction within the national government.
