Currently reading: Mercedes CEO: China EV tariffs will create 'lose-lose' trade war

Ola Källenius warns Chinese response to EU tariffs could bring yet more pain for the European car industry

Tariffs imposed on Chinese car makers selling electric cars in Europe threaten to create a “lose-lose” trade war, Mercedes-Benz CEO Ola Källenius has told Autocar.

China has now confirmed it is investigating raising tariffs on large-capacity combustion cars imported from the EU in response – something that would directly harm Mercedes.

llenius said tariffs were a "crude" way of responding to an issue and instead called for "a negotiated solution that both parties can live with".

"If you as Europe, and Germany in particular within Europe, for 100 years-plus, and certainly after World War Two, have been a very big benefactor of markets opening up and the ability to import and export in all directions, I think it is not the right strategy to turn to protectionism.

To access this content please subscribe

20% annual saving
Regular membership
£19.99
Monthly
£199
Annual
Automatic renewal
Team membership
£799
Price includes a 20% discount for a team of 5
See all benefits here