EU Imposes Tariffs on Chinese Electric Vehicles

The European Union has begun imposing tariffs on Chinese electric vehicles (EVs) in response to allegations of unfair state subsidies, with rates reaching as high as 45.3%. This action follows a failed attempt at negotiations and is aimed at protecting the EU's automotive industry, which has seen the market share of Chinese EVs surge from 3.9% in 2020 to 25% in 2023. The tariffs will apply for five years unless a solution is negotiated, with specific rates set for various manufacturers, including 35.3% for SAIC, 18.8% for Geely, and 7.8% for Tesla. China's Commerce Ministry has condemned the tariffs as protectionist and has indicated plans to challenge them through the World Trade Organization. The situation has already impacted Chinese EV stock prices, and there are concerns about potential retaliation targeting European exports. EU officials express a willingness to negotiate an alternative resolution, emphasizing the importance of fair market practices.