Spanish Prime Minister Pedro Sánchez has called on the European Union to reconsider proposed tariffs on Chinese-made electric vehicles (EVs), urging both Brussels and Beijing to seek a compromise to avoid a potential trade conflict.
During a visit to China, Sánchez expressed concern about the proposed tariffs and their possible repercussions on Spanish industry. His comments represent a shift from Spain’s previous support for the tariffs.
“We need to reconsider our position, all of us, not only the member states but also the European Commission.” Sánchez stated at an event in Kunshan.
He emphasized the need for dialogue over a trade war, noting Spain’s intention to be constructive in finding a solution between the EU and China.
The European Commission’s proposal for additional duties, ranging up to 36.3%, on Chinese EVs aims to counteract what it sees as unfair subsidies from Beijing that make Chinese products cheaper. This move has been met with a mixed response within the EU. France, Germany, and the UK have shown varying levels of support for the tariffs, while some countries, including Germany and Sweden, have abstained. The EU is scheduled to vote on the tariffs in October.
Sánchez’s stance follows a meeting with Chinese President Xi Jinping, who encouraged Spain to play a “constructive role” in improving EU-China relations. Sánchez’s comments reflect Spain’s growing concern over the economic impact of potential retaliatory measures by China. The country is particularly vulnerable to such measures due to its significant exports of pork to China, which have already been targeted by an anti-dumping investigation initiated by Beijing.
The proposed tariffs and China’s response have also influenced Spain’s economic interests. The Spanish government has signed a deal with China’s Envision Group for a $1 billion investment in green hydrogen technology, underscoring Spain’s focus on deepening economic ties with China while navigating the complexities of trade disputes.
