Swiss car dealers oppose adopting EU punitive tariffs on Chinese electric cars, citing a free trade agreement and Switzerland’s neutral trade stance.

Swiss car dealers do not expect Switzerland to adopt the EU’s punitive tariffs against Chinese e-cars, pointing to a free trade agreement with China.

“Until now, it has been customary not to adopt EU tariffs,” said Roger Kunz, President of the Association of Independent Swiss Car Dealers, in an interview with AWP. “That’s why the automobile tax in Switzerland is likely to remain at 4%. This is not expected to change.”

Switzerland’s neutral trade stance and the abolition of industrial tariffs at the beginning of the year mean that customs duties on non-European cars no longer apply, Kunz added.

Higher Demand Expected

Kunz anticipates rising demand for Chinese cars due to their competitiveness. He noted increased competition as companies like Emil Frey and Astara begin selling Chinese cars this year, including models from major manufacturer BYD.

Currently, Chinese cars hold less than 1% of the Swiss market share, compared to up to 10% in some EU countries. Kunz suggested that the EU’s imposition of punitive tariffs might provoke Chinese retaliation.

Auto-Schweiz’s Concern

Auto-Schweiz, the importers’ association, warned that the EU’s tariffs could spark a global trade conflict, ultimately hurting consumers with higher prices and less product variety. Auto-Schweiz President Peter Grünenfelder emphasized that innovation-friendly policies are needed instead of protectionism.

“Switzerland has just abolished industrial tariffs as of January 1, so a return to protectionism is the wrong approach,” Grünenfelder said.

©Keystone/SDA