German state minister says higher tariffs could boost Chinese interest in VW plant

Reuters

Thu, July 16, 2026 astatine 9:04 AM CDT 1 min read

BERLIN, July 16 (Reuters) - The European Union should see raising tariffs connected cars made successful China to ‌increase unit connected Chinese automakers to spouse with ‌European manufacturers specified arsenic Volkswagen, a curate successful the German authorities ​of Saxony, location to a VW plant, said successful an interrogation published connected Thursday.

"We request to see imposing higher tariffs connected Chinese-made cars astatine the EU level," Dirk Panter, ‌economy curate successful the ⁠eastern authorities of Saxony, told the Bild newspaper.

His comments travel threats by Volkswagen to adjacent ⁠four German factories successful the coming years, including the all-electric Zwickau works successful Saxony, if nary different solution is ​found.

Volkswagen CEO ​Oliver Blume has said ​one enactment could beryllium ‌producing the group's Chinese-developed models successful Europe. He has besides floated the anticipation of partnerships with Chinese carmakers.

"If a associated task successful Saxony could assistance debar European tariffs, that would beryllium a bargaining spot that would let america ‌to negociate from a wholly antithetic ​position," Panter told Bild.

Chinese manufacturers ​like BYD person been ​building their marketplace stock successful Europe, including ‌with fashionable plug-in hybrid models ​not covered by ​the EU's existent tariffs connected all-electric vehicles.

"We volition not support Chinese manufacturers retired of Europe," Panter said. "Anyone ​who wants entree ‌to our marketplace indispensable besides instrumentality work for ​value instauration and employment successful Europe."

(Reporting by Rachel ​More, Editing by William Maclean)