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EU Tariffs on Chinese EVs Spark Backlash, China Retaliates with Pork Probe

Jun 17, 2024, 02:00 AM

The European Union's decision to impose additional tariffs on Chinese electric vehicles (EVs) has sparked significant backlash and potential trade tensions. The tariffs, intended to protect European automakers, have been criticized by industry players and experts who argue that they will not effectively curb competition from Chinese carmakers. Instead, these tariffs may encourage Chinese manufacturers to establish factories in Europe, potentially undermining the intended protective measures. Additionally, the tariffs could have broader economic repercussions, including retaliatory measures from China. Critics also warn that the tariffs could impede the achievement of climate goals and hurt Western auto brands, as more than 50% of the electric cars China exports to the EU come from Western carmakers like Tesla, Dacia, and BMW. BYD, a Chinese EV maker with gross margins over 20%, is expected to remain competitive despite the tariffs. In response to the EU's tariffs, China has launched an anti-dumping investigation into pork imports from the EU, which could impact European agricultural exports significantly. Spanish officials have called for negotiations to avoid escalating the trade conflict further.