EU-China Trade War: Tariffs Hit Chinese EVs
The European Union (EU) has taken a controversial step to protect its automotive industry by announcing steep tariffs on electric vehicles (EVs) manufactured in China.
This move comes amid concerns that Chinese government subsidies are unfairly distorting competition in the global EV market.
According to the European Commission, these subsidies span the entire electric vehicle supply chain, from raw material extraction and battery cell production to car assembly. The subsidies even extend to supporting the shipping of these vehicles to EU ports, as reported by Euronews.
The proposed tariffs range from 17.4% to 38.1% and are set to take effect provisionally on July 5th. This action puts pressure on Beijing to reform its subsidy-driven export model in order to avoid retaliatory trade measures. While the EU has expressed its willingness to negotiate a solution, China has threatened to file a complaint with the World Trade Organization (WTO) and take countermeasures against European exports, including pork and large-engine vehicles, according to Politico.
These measures are part of a broader EU effort to take a tough stance and protect its domestic auto industry. The EU aims to level the playing field in a market now dominated by a surge in Chinese electric vehicle exports, which have captured a substantial market share in recent years.
This decision could strain economic relations between the EU and China, further escalating existing tensions in global trade. This is according to a news report from The Telegraph.
Despite ongoing diplomatic efforts to reach a negotiated solution, uncertainty remains about the future of trade relations between these two major economies. This move marks a new chapter in the global trade dispute over electric vehicles and the government subsidies that underpin them.
Translation by Iurie Tataru
