EU Tariffs on Chinese EVs Risk Trade War

The European Union (EU) has imposed tariffs on Chinese electric vehicles (EVs) ranging from 7.8% to 45.3%, following an anti-subsidy investigation that concluded Chinese EVs benefit from unfair state subsidies. These tariffs, which are in addition to an existing 10% duty, aim to protect the European automotive industry from being undercut by Chinese prices. In response, China has filed a complaint with the World Trade Organization (WTO), accusing the EU of protectionism and has vowed to take measures to safeguard its interests. Both parties express willingness to negotiate a resolution, with discussions possibly involving price commitments for Chinese EVs in the EU market. The tariffs will remain in place for five years, sparking concerns about a potential trade war between the EU and China, as well as possible repercussions on global trade and cooperation. The EU's decision reflects its commitment to ensuring fair competition and safeguarding its industrial base against subsidized imports from China.