Tariff race is 'wrong' and will push up prices, says German economy minister

Germany’s governing coalition agrees on key 2025 budget details·Reuters

STUTTGART (Reuters) - Germany's economy minister Robert Habeck criticised tariffs as damaging to the economy and consumers, days after the European Commission proposed tariffs of up to 37.9% on China-made EVs despite heavy protest from the European car industry.

"A race via tariffs to protect and cut off economic areas again is wrong," Habeck said, speaking at the inauguration of a battery development centre at the Mercedes-Benz headquarters on what it will take to build up competitive green industry in Europe.

"Wrong for an export nation like Germany, wrong for an automotive export nation like Germany, but ultimately also wrong for consumers and for people ... everything will become more expensive," he added.

(Reporting by Victoria Waldersee, Editing by Friederike Heine)