Merz ‘surprised’ by Asian pushback to ‘Made in Europe’ plan for car industry
The German chancellor said the Franco-German plan to restrict car subsidies "sparked considerable concern" among East Asian capitals.
German Chancellor Friedrich Merz expressed surprise at the strong opposition from East Asian nations to the proposed "Made in Europe" rules for the car industry. The plan, agreed upon by Merz and French President Emmanuel Macron, aims to restrict car subsidies to vehicles produced within the EU, Switzerland, and the U.K. South Korean President Lee Jae Myung and Japanese officials voiced concerns over the restrictions, stating they wanted to be treated as EU member states.
Merz admitted that the proposal had sparked significant concern in the region, particularly in Singapore, Japan, and Korea, with fears of a new wave of protectionism in Europe and the potential creation of barriers to other countries. The chancellor promised to take these complaints seriously and address them at the upcoming EU leaders' summit in Dublin on November 13.
Merz had also proposed a "global political alliance for rules-based trade" involving middle powers, including the EU, Asian nations, Canada, Australia, New Zealand, and the South American Mercosur trade bloc, to coordinate and act together against challenges to international rules or economic pressure from other entities, such as China's threats to restrict access to rare earth metals or U.S. President Donald Trump's tariff threats.
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