Spanish PM calls on EU to reconsider tariffs against Chinese EVs

The Spanish Prime Minister Pedro Sanchez stated on Wednesday that the European Union should reconsider its proposed import tariffs for Chinese-made electric cars, and urged Brussels to avoid a trade conflict.

Sanchez's remarks during a trip to China indicate a shift in Spain's stance, which had previously supported the tariffs. He also expressed concern over the potential impact of the EU-China Trade Spat on Spanish industry.

"I must be honest, we all have to rethink our position. Sanchez, speaking at an event held in an industrial park of the Chinese city Kunshan, said that not only the European Commission but all the member countries must reconsider their position.

"We do not need another war. This time, it is a trade conflict." I believe we should build bridges between Europe and China. From Spain, we will be positive and work to find a solution between China and the European Commission.

The European Commission didn't immediately respond to an inquiry for comment.

On Monday, Chinese President Xi Jinping urged Sanchez to play a “constructive” role in improving the strained relations between Beijing and Brussels.

In October, EU member states will vote on whether or not to impose additional duties on Chinese EVs as high as 36.3%. China responded to this threat by launching antidumping investigations on imports of dairy and pork from Europe.

France and Italy voted for the tariffs in a July non-binding referendum. Germany, Finland, and Sweden abstained.

The EU has reduced or revised certain duties.

Spain could be hit particularly hard by any retaliation from China in response to the tariffs. Spanish pork producers were the biggest exporters of the EU, with 1,5 billion euros ($1.66billion) worth of products exported to China by 2023.

Chinese state media reported that Chinese automakers also want Beijing to raise tariffs on imported European cars powered by gasoline in response to Brussels' proposal of curbing Chinese exports EVs.

'A CERTAIN OPTIMISM

According to a Spanish government source, the delegation in China believed that Beijing viewed the visit as being more important than the one Sanchez made in March of 2023. This increased confidence in the possibility of an agreement on pork tariffs.

The National Association of Spanish Meat Industries, (ANICE), said that it noticed "a certain positivity" when listening to Sanchez and the team. It expressed its hope for this.

Sanchez was in China as well to encourage investment, particularly in the renewable energy industry. Spain announced on Tuesday that it had signed an agreement under which China's Envision Group will build a $1billion plant to manufacture machinery used in the production of green hydrogen.

China has also renewed its efforts to reverse the proposed tariffs on Chinese electric vehicles.

(source: Reuters)