Financial reports and stock performance of Chinese EV companies

EU's 48% Tariffs on Chinese EVs Spark Retaliatory Measures on Pork Imports

Jun 19, 2024, 11:39 AM

The European Union's recent announcement of tariffs up to 48% on Chinese electric vehicles (EVs) has sparked a significant trade conflict with China. The tariffs, aimed at protecting the European car industry from subsidized Chinese EVs, have led to a series of retaliatory measures from China. In response, China has launched an anti-dumping investigation into European pork imports, which could result in substantial duties on EU pork products. This move is seen as a direct countermeasure to the EU's tariffs on Chinese EVs. Chinese carmakers, including BYD, Geely, and SAIC, are significantly impacted by the new tariffs, and some have started exploring alternative markets or building factories in Europe to mitigate the effects. Tesla's Model 3 imports from China could face higher tariffs unless inspected. The tariffs have also led to a broader debate on whether they will protect legacy auto OEM market share in the US and EU, where Chinese EV stocks fell almost 10% last week. Spain's pig farmers, who supplied 22% of China's imported pork in 2023 worth 1.2 billion euros, are particularly vulnerable to China's retaliatory measures. The situation has raised concerns about a potential global trade conflict, with both sides preparing for further economic counterstrikes.