VW CFO Says Tariffs on Chinese EVs Are Only a Short-Term Fix

Volkswagen AG said higher import tariffs for Chinese-made EVs in the European Union will offer only a short respite, with lower costs necessary to stay competitive over the long run.

That’s because Chinese automakers are set to start making cars in Europe, according to Chief Financial Officer Arno Antlitz, who said the EU’s plan for additional barriers risks painful retaliatory actions. On Wednesday, China signaled it’s ready to unleash tariffs as high as 25% on imported cars with large engines, as trade tensions escalate with the US and European Union.

“We have to use the next two to three ...