On October 4, the European Union cast a pivotal vote regarding the implementation of a five-year anti-subsidy tax on electric vehicles imported from China. The European Commission announced that this proposal was supported by the required majority of EU member states. In response, Germany’s Federal Minister of Finance, Christian Lindner, took to social media to express concerns about the rising risks associated with trade policy disputes. He urged that, regardless of the vote’s outcome, the European Commission, under Ursula von der Leyen’s leadership, should strive to avoid escalating trade conflicts, advocating instead for solutions through negotiation.

Lindner’s concerns resonated within the German business community, which has been vocal about the need for negotiations to avert the imposition of additional tariffs. Organizations like the Federation of German Industries and the German Automotive Industry Association, along with various German car manufacturers, warned that such measures could inflict significant damage on the German economy.

On October 3, Lindner publicly criticized the European Commission’s stance, deeming the proposal for temporary anti-subsidy taxes a perilous decision. He acknowledged the potential fallout from a trade war with China, suggesting it would be more harmful than beneficial for Europe’s automotive sector.

It’s worth noting that the EU Commission first launched an investigation into subsidies for electric vehicles imported from China on October 4 of the previous year. The consideration for temporary anti-subsidy taxes was set in motion on July 4 of this year, with a draft ruling released on August 20 proposing anti-subsidy tax rates ranging from 17% to 36.3% for Chinese electric vehicles.