Etiqueta: Tariffs

The European crackdown comes after Joe Biden announced sweeping tariffs on $18 billion worth of Chinese goods, including a 100% tax on Chinese EVs.

China will take all necessary measures to "firmly safeguard" its lawful rights and interests after a newspaper reported that the European Commission would impose tariffs of up to 25% on imported Chinese electric vehicles (EVs), its foreign ministry said on Wednesday. After an eight-month long investigation, the Commission, which oversees trade policy for the 27-nation European Union, is expected to notify carmakers on Wednesday that it will provisionally apply additional duties of up to 25% on imported Chinese EVs from next month. Growing alarm over Chinese industrial overcapacity flooding the EU with cheap products, including EVs, is opening a new front in the West's trade war with Beijing, which began with Washington's import tariffs in 2018.

The EU is set to impose tariffs of up to 38% on Chinese electric vehicles to stop the dumping of cheap cars. But some auto producers are already scaling back investments in Europe due to poor sales.

To counteract market dumping, the European Union will slap tariffs of up to 38% on electric vehicles from China. This puts additional strain on China’s EV manufacturers, which already face poor sales in Europe.

Plus, affordable EVs from brands based in China could likely avoid U.S. tariffs if the cars are built in North America.

Domestic politics are a major factor, but not the only one.

European policymakers need to answer the ‘trust question’ of how far they want Chinese companies involved in green industries such as solar energy, batteries, and electric vehicles.

China should raise its import tariffs on large gasoline-powered cars to 25%, a government-affiliated auto research body expert told China's Global Times newspaper as the country faces sharply higher U.S. auto import duties and possibly additional duties to enter the European Union

President Biden's recent remarks about Americans being able to choose any car they want clash with his EPA's new stringent emissions standards, critics say.

It’s no easy feat.