The German government is set to vote against imposing European Union tariffs on electric vehicles from China, dpa learned on Thursday.
EU countries are due to vote on Friday on the contested issue of additional tariffs of up to 35% for battery-powered electric vehicles imported from China.
Sources within the German Economy Ministry told dpa that Berlin’s goal was fair competition, not a trade war.
The ministry’s aim is a negotiated solution that safeguards both sides’ interests, it suggested.
The German decision could help to torpedo the measure, which requires opposition from 15 of the EU’s 27 member states, representing at least 65% of the bloc’s population, to be rejected.
Germany’s powerful car industry, which relies heavily on the Chinese market, has warned of a global trade conflict and lobbied intensively against the tariffs.
Chancellor Olaf Scholz has also signalled his opposition, while his coalition partners have further questioned the EU’s move.
The tariffs, which could be implemented as soon as November, can still be avoided if China and the EU agree to settle the dispute.
The measure was announced by the European Commission after an investigation accused Beijing of distorting the EU market by unfairly subsidizing domestic electric vehicle manufacturers.
Chinese electric cars are on average 20% cheaper than EU models, according to the commission.