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on september 11, bloomberg reported that german chancellor scholz joined spanish prime minister sanchez in calling on the european union to abandon plans to impose tariffs on chinese-made electric vehicles.

spanish prime minister pedro sánchez

while several european leaders have visited china since the european union announced it would impose temporary tariffs on chinese electric vehicles as planned, sanchez this week became the first to ask the bloc to reconsider its trade measures, a rare move for a politician who usually aligns with mainstream eu policy.

the eu will make a final decision next month on whether to go ahead with the tariffs. if 15 member states, representing 65% of the eu's population, vote against the new tariffs, the european commission will be forced to shelve the measure.

"frankly speaking, we need to reconsider this decision, not just by the member states but also by the european commission," sanchez said on wednesday. german government spokesman steffen hebestreit welcomed the spanish move, saying it was "our common direction forward."

given the opposition from the eu's two largest member states, the european commission must take it seriously, which may affect its negotiations with china on the matter.

germany and spain both have huge financial incentives to avoid being caught up in the tariff vortex. german automakers including volkswagen ag and bmw ag would be hardest hit in the trade dispute because they sold 4.6 million vehicles to china in 2022.

spain is the second-largest carmaker in the european union and is seeking to attract chinese investment to develop its electric vehicle industry - one of the reasons why sanchez is visiting china this week.

germany and spain are not the only countries skeptical of the eu's stance. swedish prime minister ulf kristersson has also warned against a tough stance on china trade. in may, he said the eu should not "undermine global trade," noting that "blocking each other's products is not the way out for industrial countries like germany and sweden."

chinese and eu officials are expected to meet later this month to explore whether to reach a deal before the tariffs take effect, according to people familiar with the matter. but the eu says any such solution would need to abide by world trade organization rules and address the underlying issues of the subsidies.

eu member states must vote by the end of october on whether to move forward with the tariffs. if they fail to form a qualified majority to block the measures, the european commission will publish final rules on the tariffs by oct. 30, with the tariffs set to remain in effect for five years.