German Chancellor Merz Says He Is “Surprised” by Asian Opposition to EU ‘Made in Europe’ Car Subsidy Plan
German Chancellor Friedrich Merz says he is "surprised" by Asian pushback to the EU's 'Made in Europe' car subsidy plan, highlighting trade friction.
POLICY WIRE — Berlin, Germany — German Chancellor Friedrich Merz said he was “surprised” by the intensity of pushback from East Asian nations toward the EU’s upcoming Made in Europe automotive rules.
The plan, crafted together with French President Emmanuel Macron, would tie future vehicle subsidies to a minimum share of components manufactured inside the European Union, Switzerland or the United Kingdom.
Officials from South Korea and Japan have lodged strong objections, warning that the measure could erode existing trade ties and act as a form of protectionism.
The dispute highlights how sector‑specific frictions may stall the broader industrial partnership Merz envisions for Europe.
Merz also noted pressure from leaders in Japan and Singapore urging the bloc to reconsider rules that favor regional content over globally sourced parts.
Analysts caution that the controversy could delay the rollout of the subsidy framework slated for the next few years.
Reporting by Policy-Wire (PW)
