The proposal emerges as Chancellor Friedrich Merz’s coalition navigates intense political volatility, driven by the rising influence of the far-right Alternative for Germany. For Volkswagen, the stakes are immediate; CEO Oliver Blume is currently steering the company through a painful restructuring process that threatens widespread job cuts and potential plant closures.
While the European Union has already implemented tariffs on pure electric vehicles from China, the current policy leaves plug-in hybrids untouched. Klingbeil views this regulatory gap as a vulnerability that undermines the competitiveness of German labor and engineering. By aligning trade policy with the urgent need for worker security, the government hopes to stabilize a sector facing its most significant transformation in decades.





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