According to Bloomberg, citing people familiar with the matter, the German government is working to block or weaken a new round of EU tariffs on Chinese electric vehicles. The goverment seeks to advance a compromise between China and the EU before the tariffs formally take effect on July 4. The European Commission this week finalized rules imposing additional duties on Chinese EV imports, with total tariff rates potentially reaching up to 48%. This rate depends on the degree of cooperation by individual manufacturers in the anti-subsidy investigation. BYD, Geely, and SAIC Motor’s MG brand are among the companies included in the tariff scope. BYD Seagull in Germany The EU argues that these firms benefit from subsidy-driven cost advantages that could distort competition and pressure Europe’s domestic auto industry. Prior to the decision, German officials had repeatedly signaled that “room for negotiation” remained, arguing that diplomatic engagement could still produce alternative solutions. As the EU’s largest economy, Germany maintains deep industrial linkages with China, particularly through its automakers Volkswagen, BMW, and Mercedes-Benz, all of which rely heavily on sales in the Chinese market. German government deputy spokesperson Wolfgang Büchner said Berlin hopes the parties can still reach an amicable solution before July 4. SAIC MG ZS Economy Minister Robert Habeck also stressed after the policy announcement that a window remains to prevent escalation, and plans to visit China next week to discuss the issue with Chinese counterparts. He has previously argued that the EU’s EV tariff decision should not be treated purely as a technical trade measure, but requires political coordination. The dispute also carries broader spillover risks. China has already signaled potential countermeasures targeting sectors including agriculture, aviation, and large-engine combustion vehicles. Leapmotor T03 shippped to Europe If trade tensions escalate further, German automakers could be indirectly affected. Market dynamics are shifting in parallel. According to Dataforce, Chinese EVs accounted for more than 15% of the European market in April this year, while Chinese brands’ overall share of the European auto market is approaching 10%. Against the backdrop of accelerating electrification, the tariff debate is further exposing divisions within Europe’s industrial policy framework.