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IW Cologne Presses Merz Government to Levy Targeted Countervailing Duties on China

Berlin has not acted on the call, which seeks a narrow response to Chinese subsidies.

Overview

  • IW trade expert Jürgen Matthes urges rapid use of countervailing duties to neutralize Chinese state-backed price advantages.
  • He stresses these measures are targeted rather than punitive, applied only where Germany retains meaningful, viable production capacity.
  • Established investigative methods could quantify subsidy and currency effects by sector to calibrate duty levels.
  • The EU already levies 7.8% to 35.3% duties on Chinese electric vehicles, while China has recently imposed tariffs on certain EU dairy products.
  • The push comes during ongoing EUChina negotiations and follows a U.S. Supreme Court ruling that invalidated most of President Trump’s special tariffs.