Key facts
- German Chancellor Friedrich Merz was surprised by Asian pushback to the 'Made in Europe' car industry plan.
- The plan would restrict car subsidies to vehicles produced within the EU, Switzerland, and the UK.
- South Korea and Japan strongly protested the proposed rules.
- Merz vowed to take complaints seriously and raise them at the next EU leaders' summit on November 13.
- Merz proposed a "global political alliance for rules-based trade" among middle powers.
German Chancellor Friedrich Merz stated he was "surprised" by the strong opposition from East Asian countries to the EU's proposed "Made in Europe" rules for the automotive sector. The plan, agreed upon by Merz and French President Emmanuel Macron, would restrict car subsidies to vehicles manufactured within the EU, Switzerland, and the UK. This has led to significant concerns in countries like South Korea and Japan, who view it as a potential wave of European protectionism. Merz acknowledged these concerns and pledged to address them at the upcoming EU leaders' summit in Dublin on November 13. He also proposed forming a "global political alliance for rules-based trade" among middle powers to counter economic pressure from other nations.