While the European Union was demanding China to pay higher taxes, some prominent vehicle manufacturers of the European market such as Mercedes-Benz Group and BMW AG came in support of China. They forwarded their concern that the European Union should step back with this taxing as their action. It will result in negative consequences for their sales in China. The reason was that when they are all struggling to make their ends meet, and they did not want to end their business in China.
The top labor leader at Volkswagen said , that even Europe’s biggest automobile manufacturer, who works in Germany plans to close at least three of its factories for good. Why? For not generating enough revenue for the functions to operate normally.
Will The EU and China Still Be On Talking Terms Or Not?
Despite the conflict in thinking, the European Union will continue to talk to China, even after Europe imposes higher tariffs on their Electrical Vehicles. The discussion will be done with the intention of searching for solutions that can benefit both the buyer and seller. However, those conversations have not given any effective results as none of the countries have found a way how to tackle the tariffs. So far the elevation in duty has raised the risk of a tit-for-tat negotiation in a relationship that shared a value of $799 billion in 2023 during bilateral merchandise trade.
