Mercedes CEO Urges EU for Fair Chinese EV Tariff Solution

Mercedes-Benz CEO Ola Källenius has called on the European Union to seek an equitable solution for Chinese-made electric vehicles (EVs) entering the European market, rather than relying on tariffs, which he described as the 'crudest instrument.' Källenius emphasized the importance of fair competition and warned that tariffs could provoke reciprocal measures from China, potentially harming European automakers who are heavily invested in the Chinese market. He and the wider German auto industry advocate for balanced trade measures that support both local manufacturers and international partners, highlighting the need for a level playing field. The EU has introduced additional tariffs on Chinese EVs, but discussions are ongoing to find alternatives, such as minimum pricing, to address rising Chinese imports without escalating trade tensions. This approach is widely supported in the automotive sector, amid a surge in Chinese EV exports to Europe. Mercedes-Benz’s position reflects broader concerns that open markets and innovation are best fostered through competition, not trade barriers.