Germany Does not Want Trade Conflict with China, opposes EU Tariff on Chinese EV

European Union failed to clearly vote for or against on a proposed tariff upto 45% upon Chinese EV, leaving the task to the European Commission to take a final call, news agency Reuters reported on Friday, quoting EU sources.

EU members remained divided over the subject with leading car makers of Germany, who had urged their country to vote against the proposal, calling the tariff proposal of EU on Chinese cars as a ‘fatal signal’. They feared over what an escalating trade conflict will mean for business. "Today's vote is a fatal signal for the European automotive industry. What is needed now is a quick settlement between the EU Commission and China to prevent a trade conflict from which no one gains," BMW CEO Oliver Zipse was quoted by news agency Reuters as saying.

German carmakers, which made a third of their sales last year in China, oppose the tariffs because they worry about retaliation measures and fear a trade conflict with the country's second most important trading partner.