Europe raises tariffs on Chinese-made electric vehicles

Europe’s new tariffs on Chinese electric vehicles could drive up costs for European consumers while stoking tensions with China over trade practices.

Melissa Eddy and Jenny Gross report for The New York Times.

In short:

• The EU imposed tariffs on Chinese-made electric vehicles, with rates reaching up to 45%, to protect Europe’s car industry from subsidized imports.
• China denounced the tariffs as protectionist and hinted at retaliatory measures, potentially targeting European products like brandy and dairy.
• Some Chinese automakers are setting up European-based factories to bypass the tariffs and maintain market access.

Key quote:

“This is a typical act of trade protectionism.”

— Lin Jian, China’s foreign affairs ministry spokesperson

Why this matters:

With Chinese electric vehicle imports surging in Europe, tariffs aim to preserve European manufacturing jobs and bolster the EU’s auto industry. However, these measures may trigger further trade disputes with China, affecting European exports and complicating international climate cooperation.

Read more:

• Canada imposes new tariffs on Chinese-made electric vehicles
• China and the EU discuss potential tariff hikes on Chinese electric vehicles
• US imposes tariffs on Chinese electric vehicles to protect domestic industry