Few economies are as dependent on the automotive industry as Slovakia's. Economy Minister Denisa Sakov said at the beginning of the year that “the automotive industry in Slovakia employs 260,000 people, has a 10-percent share in GDP and a 40-percent share in Slovak exports.” That is why Slovakia is afraid of retaliation in connection with imposing punitive tariffs on Chinese electric cars. The European Commission received enough support to impose punitive tariffs on Chinese electric cars. Germany, Hungary, Slovenia were against their introduction, Malta and Slovakia. Poland supported this idea.
Slovakia is trembling before the Chinese response
– Unfortunately, there was no blocking minority that could have prevented this unwiseness – he commented on the EU decision prime minister Slovakia Robert Fico, quoted by dennikn.sk. – China may respond by introducing measures that will make it virtually impossible to import European mid-range and luxury cars into the huge Chinese market, he added. And he emphasized that this would have a “devastating” impact on the European economy. The Chinese response would also affect Slovaks. In factories Volkswagen SUVs for the Chinese market are produced in Bratislava. Jaguar Land Rover has a factory in Nitra, Slovakia, which exports cars to China. Moreover, German car companies such as Mercedes and BMW, which produce car components in Slovakia, export over 30 percent. its production to China.
– We consider tariffs to be potentially harmful to our economy and the entire automotive industry. Any reciprocal actions by China may seriously threaten Slovak exports, which last year in the segment of passenger vehicles with combustion engines reached a value of EUR 2.3 billion, said Patrik Križanský, director of the Slovak Electric Mobility Association (SEVA), quoted by aktuality.sk.
– The trade war with China may have a very negative impact on the entire supply chain of the European automotive industry. Therefore, we emphasize the need to continue the dialogue between the European Commission and China to prevent further trade conflicts, he appealed.
Europe in fear of China's reaction. “It will weaken the economy”
Similar appeals were raised by, among others, Central Association of the German Automotive Industry (ZdK), which also expects negative consequences for the car trade and the German automotive industry. Vice-president of ZdK Thomas Peckruhn in an interview with “Augsburger Allgemeine” warned that China's retaliation would lead to “weakening the German economy and the producers and suppliers operating here.”
Penal duties are to be introduced from the beginning of November. The fee tariffs are to range between 7.8 percent. and 35.3 percent depending on the manufacturer and be charged in addition to the existing duty rate of ten percent. The new customs duty rates are intended to be a response to subsidizing Chinese companies by the authorities in Beijing. The European Commission still has until October 30 to change the customs duty rates.