Bert Rürup: Tariffs are the Janus face of protectionism
Europe's automotive industry is caught in a tariff trap. Protective barriers against Chinese imports can provide it with time. However, they will not compensate for the loss of competitiveness, which is also self-inflicted.
The EU is experiencing a resurgence of protectionism amid weak domestic demand and high overcapacity, with China's industry exporting more goods to Europe while EU imports decline. The EU's trade deficit with China stands at approximately €1 billion per day. Chinese auto manufacturers, particularly in electric vehicles, have gained a technological edge, putting pressure on established producers in Wolfsburg, Stuttgart, and Munich.
In 2022, over 1.1 million Chinese-made cars were imported into the EU, accounting for around 7% of all new cars, and 20% of battery-electric vehicles.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
