In order to account for investments made in Europe, the CEO of German automaker Volkswagen, opened a new tab, and suggested that the European Union modify its proposed levies against electric vehicles manufactured in China.

In an interview, Oliver Blume, the CEO of Volkswagen, stated that reciprocal credit for European Union investments should be given in place of punitive tariffs. Tariffs should be advantageous for those who invest since they generate employment and support regional businesses.

The EU executive said on Friday that the EU will continue to impose EU tariffs on electric vehicles produced in China, despite the fact that Germany, the bloc's largest economy, and German automakers opposed the plans, revealing a divide over the EU's greatest trade dispute with Beijing in a decade.

The planned five-year charges of up to 45% on electric vehicles (EVs) made in China are scheduled to take effect next month, therefore costing automakers billions of more euros to enter the EU.

After a year-long anti-subsidy inquiry, the Commission, which is in charge of the bloc's trade policy, declared on Friday that it will continue negotiations with Beijing while also stating that it would resist what it views as unfair Chinese subsidies.

VW's Blume said in an interview automotive industry Europe may be harmed by a Chinese retaliatory levy.