Against the backdrop of the trade dispute with China, the former head of the European Central Bank (ECB), Mario Draghi, has called on the EU to take a “cautious” approach. “We are different from the United States, we cannot put up a protectionist wall,” Draghi said on Monday in Brussels, referring to the USA, which has introduced strict trade restrictions on imports from China.
Draghi emphasized that the EU is significantly more dependent on foreign trade than the USA and China and must therefore proceed “very carefully, sector by sector”. Because of the open economy, European countries would also feel the effects of a broad trade war more strongly. The aim must be to restore fair trading conditions – for example if the market is distorted by excessive subsidies or state-owned companies.
Up to 36.3 percent punitive tariffs
The EU Commission suspects, among other things, that China is giving its car manufacturers an unfair competitive advantage with state subsidies. On Friday, the EU countries are due to vote on a proposal from Brussels that would impose punitive tariffs of up to 36.3 percent on electric cars from China. For comparison: US President Joe Biden announced 100 percent tariffs on electric cars from China in May.
China, for its part, is threatening tariffs on dairy products and meat from Europe in the trade dispute with the EU. Both sides have already gone to the World Trade Organization (WTO) because of the threat of tariffs, but negotiations on a compromise have so far failed.