The Italian auto suppliers' association Anfia has called for 80% import tariffs on Chinese vehicles and components, warning that failure to act could lead to a 40–50% decline in Italian auto parts exports by 2028. Roberto Vavassori, president of Anfia, framed the proposal as a response to growing competition from Chinese manufacturers, citing concerns over strategic industrial vulnerability in Europe. ‘We have the greatest respect for what China’s automotive industry has achieved,’ Vavassori said, ‘but that respect has now turned to fear.’
The warning follows Volkswagen’s announcement of 50,000 job cuts worldwide, driven by intensified competition in China. Volkswagen, Europe’s largest automaker, has already reduced production capacity, with €1 billion of its €4.9 billion annual exports to Germany originating from Italian suppliers. Vavassori emphasized that Europe must prioritize strategic autonomy in automotive manufacturing, warning that unchecked imports could undermine Italy’s industrial base.
China’s share of the EU car market surged to over 9% in the first half of 2024, according to the ACEA, Europe’s automotive industry association. Anfia’s proposal extends tariffs to both vehicles and components, noting that 80% of an auto’s value stems from parts. Without protection, Italian exports could collapse, Vavassori argued, risking the collapse of the sector.
Current EU tariffs on Chinese EVs range from 18% to 45%, depending on the manufacturer, already imposing significant barriers. Vavassori also criticized the EU Industrial Accelerator Act, which he claimed would favor imports from Morocco and Turkey—countries with existing free-trade agreements with the EU—over European production. ‘As drafted, the law does nothing to support European manufacturing,’ he stated. Chinese firms like BYD and Chery, which have established European assembly plants, are largely seen as ‘screwdriver factories’, relying on foreign component imports rather than local sourcing.
Niedersachsen’s Minister-President Olaf Lies (SPD) echoed the call for protectionism, citing Volkswagen’s 20% state-backed stake and the broader threat to Germany’s auto industry. The debate reflects broader concerns over geopolitical competition, as China subsidizes domestic producers and the U.S. has imposed trade barriers, leaving Europe’s approach uncertain.
The proposal underscores the EU’s struggle to balance market openness with industrial resilience, particularly as Chinese automakers expand their European footprint while European firms face declining competitiveness.
