Mercedes-Benz CEO Urges Europe to Lower Tariffs on Chinese EVs

Competition Drives Innovation

Mercedes-Benz CEO Ola Källenius advocates for reducing tariffs on electric vehicles imported from China to Europe. He believes that increased competition will push European brands to enhance their offerings and technology.

Challenging the Status Quo

In an interview with the Financial Times, Källenius opposed the European Commission’s consideration of raising import duties on Chinese-made EVs. He suggested that lowering tariffs would foster healthy competition and innovation in the market.

Market Dynamics

Currently, Chinese EVs face a 10% tariff when entering Europe, while European carmakers encounter a 15% tariff when exporting to China. Despite concerns from other automakers, Källenius emphasized that Mercedes did not request any protective measures.

Global Economic Impact

Källenius highlighted the importance of open markets and competition in driving economic growth. He warned against protectionism, stating that history shows it does not lead to long-term success.

Strategic Considerations

German automakers like Mercedes are cautious about potential retaliation from China if new tariffs are imposed. With a significant portion of its sales coming from China and strong ties to Chinese companies, Mercedes is navigating a complex global landscape.