Panter: Raise Tariffs on Chinese Investment in Zwickau

By imposing higher tariffs on Chinese cars, Saxony’s Minister of Economic Affairs, Dirk Panter, hopes to improve the chances of securing a stake in the VW plant in Zwickau, which is threatened with closure. “We need to consider higher tariffs on Chinese-made cars at the EU level,” the SPD politician told the “Bild” newspaper. “If a joint venture in Saxony could then help avoid European tariffs, that would be a bargaining chip that would allow us to negotiate from a completely different position.”

Panter: Consider Doubling Tariffs

“A potential joint venture with Chinese automakers at plants like Zwickau must be attractive to the Chinese partners—in other words, production in Zwickau must be worthwhile for them,” Panter insisted. One could consider doubling the base import tariff on Chinese electric cars.

Since 2024, the EU has imposed tariffs on imports of electric cars manufactured in China, ranging from 7.8 to 35.3 percent depending on the manufacturer. In an anti-subsidy investigation, Brussels had previously concluded that electric cars manufactured in the People’s Republic benefit from unfair government subsidies and thus have a market-distorting price advantage in the EU. 

VW to Consider Producing Its Own Chinese Models in Europe

Volkswagen is grappling with cost-cutting measures in light of overcapacity. Media outlets had recently reported on the impending closure of up to four plants, including Zwickau. Group CEO Oliver Blume recently announced that the company would also examine the production of Chinese VW models in Europe to improve plant utilization.

Panter had previously spoken out on several occasions in favor of bringing production from China to Germany and had also floated the idea of a joint venture with a Chinese manufacturer for Zwickau.