EU Approves Tariffs on Chinese EVs, Risks Beijing Retaliation
- EU votes to impose additional tariffs on Chinese-made electric vehicles (EVs), risking retaliation from Beijing.
- Tariffs could rise to 45% including the existing 10% on imported vehicles.
- European Commission will release the final plan by the end of October while seeking alternative solutions with China.
The European Union (EU) has voted to impose further tariffs on Chinese-made electric vehicles (EVs), escalating trade tensions with Beijing. In response, China has already launched an anti-subsidy investigation into EU dairy imports as a possible retaliatory measure.
The final tariffs could reach up to 45%, including the EU’s existing 10% tariff on imported vehicles, though preliminary plans suggest a range between 9% and 36%. The European Commission, which leads the investigation, will present its definitive findings by October 30.
Are you looking for the best trading platform? Sign-up to the best trading platform for you for FREE. Takes 2 mins.
EU's Investigation into Chinese EV Subsidies
The EU’s investigation seeks to determine whether Chinese subsidies enable local EV manufacturers to undercut European competitors by selling at unfairly low prices. The European Commission is focused on ensuring a level playing field for EU automakers, but the proposed tariffs have sparked concerns about Beijing’s retaliation.
EU and China Seeking Alternative Solutions
The European Commission stated that it remains open to working with Chinese officials to find an alternative solution before the tariffs are finalized. China insists there is no evidence that its EV imports harm the European market, while some EU members are wary of potential retaliation, especially given China’s investigation into EU dairy imports.
Global Trade Tensions Impacting EV Market
The EU’s move follows similar actions taken by the U.S. and Canada, both of which increased tariffs on Chinese EVs earlier this year. The White House justified its decision by claiming it would protect American workers from what it called China’s unfair trade practices.
In response to these tariffs, Stellantis (STLA) announced plans to shift some EV production out of China, while Tesla (TSLA) raised the prices of its Model 3 vehicles in Europe.
S&P 500 Hits Record High; Dow Gains as Longboard Pharmaceuticals Surges 51% and Tech Stocks Rise S&P 500 Reaches Record
S&P 500, Dow Notch Record Closing Highs as Crude Slumps Major Indexes Set Record Highs: The S&P 500 and Dow
Should You Buy Plug Power Stock While It’s Trading Below $4? A Closer Look at the Hydrogen Pioneer’s Future Plug
MicroStrategy Stock Rises 550% in 2024: Should You Invest? MicroStrategy (NASDAQ: MSTR) has been one of the top-performing stocks in
One of Tesla’s Biggest Bulls ‘Disappointed’ After Robotaxi Event Tesla’s much-anticipated Robotaxi event left one of its most ardent supporters