EU Imposes New Tariffs on Chinese Electric Vehicles

The European Union has imposed tariffs of up to 35% on Chinese electric vehicles (EVs) to counter state subsidies, significantly affecting Chinese automakers like SAIC-owned MG, which has seen a 58% drop in European registrations. In response, MG is investing $135 million in a new manufacturing facility in Egypt to circumvent the tariffs, aiming to produce 50,000 vehicles annually by 2026, with potential expansion to 100,000. Meanwhile, American investors remain optimistic, with a Bank of America survey indicating a bullish sentiment in the stock market, partly fueled by expectations of tax cuts and deregulation under the incoming Trump administration. As tariffs become a focal point, discussions at the upcoming CES trade show will highlight their potential impact on the auto and tech industries, with experts warning of rising costs and supply chain disruptions. Industry leaders emphasize the need for strategic shifts, such as relocating production to the U.S., which may be costly and time-consuming. Overall, the interplay of tariffs and market dynamics is reshaping both the automotive landscape and investor sentiment.