Market analysis reports from industry analysts or official EU trade statistics

EU Imposes 45% Tariffs on Chinese EVs; Britain's Passive Approach Raises Concerns

Oct 12, 2024, 09:37 AM

The European Union has voted to impose tariffs on Chinese-made electric vehicles (EVs), citing concerns over economic threats similar to those posed by Chinese solar panels a decade ago. The tariffs, set at 45%, aim to protect the EU market from an influx of subsidized Chinese EVs. However, this move has sparked significant debate and concern over potential repercussions. Critics argue that the tariffs might backfire, potentially leading to a 'lose-lose' situation for both economies. The United States and Canada have implemented similar protective measures, aligning with the EU's stance. Despite these measures, competition in the domestic EV market remains robust, with Japanese, Korean, and German manufacturers still active. Spanish Minister for Economy, Trade and Business Carlos Cuerpo emphasized the importance of continued talks between the EU and China to avoid escalating protectionist measures. Talks in Brussels have ended with major differences still unresolved, and China has urged the EU not to affect EV tariff negotiations with separate price discussions. Daryl Guppy, former national board member of the Australia China Business Council and Australian representative of the Silk Road International Chamber of Commerce, noted that these tariffs could have broader implications. Additionally, Britain's passive approach to the tariffs could risk a diplomatic fracture with both the EU and the US.