EU-China trade dispute heats up on EV tariffs

The People’s Republic of China slammed the tariffs on Thursday as protectionist and urged the European Union (EU) to reconsider its wrong practices.

The EU’s decision to impose tariffs on Chinese electric vehicles (EVs) has sparked a trade dispute. As a response, China threatened to take all necessary measures to protect its interests.

Key points of contention:

• The EU claims China’s EV industry benefits from unfair subsidies, giving them an edge over European competitors.
• China denies this and argues the tariffs will hurt consumers and hinder the global transition to clean energy.

The EU’s tariffs are set to range from 17.4 per cent to 38.1 per cent, potentially adding billions to Chinese EV makers’ costs.

Major Chinese EV companies like BYD and SAIC expressed concern, but their stocks remained largely unaffected by the news. Analysts believe Chinese automakers may raise export prices and pass on some costs to consumers.

Attribution: Reuters