US-China trade war: Up to 25pc EU tariffs on Chinese EVs from next month
Business
European automakers are being challenged by an influx of lower-cost electric vehicles
BRUSSELS (Web Desk) – The US-China trade war is not only escalating but also spreading as the European Commission is reportedly set to impose additional tariffs on Chinese electric vehicles (EVs).
According to the Financial Times, which quoted sources familiar with the matter, the European Commission – the executive arm of European Union (EU) – is going to notify carmakers on Wednesday about that it will apply additional duties of up to 25 per cent on imported Chinese EVs from next month.
It means the EU is brushing aside the German government warnings that the move risks starting a costly trade war with Beijing.
Last month, the Biden administration announced quadrupling US tariffs for Chinese EVs to 100pc, as part of a move covers an array of Chinese imports also including computer chips and medical products.
Read more: Turkish tariffs on Chinese vehicle imports hiked by 40pc
Germany, known for its auto industry, has China as the biggest trade partner, meaning that the expected retaliatory measures will affect the German business interests.
Analysts have said they expect EU tariffs of between 10pc and 25pc on Chinese EVs, a move likely to prompt possible retaliation from Beijing. The European Commission has said Chinese EVs receive excessive subsidies.
Meanwhile, the EU and China's foreign affairs ministry did not immediately respond to Reuters' requests for comment.
The move comes as European automakers are being challenged by an influx of lower-cost EVs from Chinese rivals.
China has rebuked the EU over the anti-subsidy investigation, urged cooperation and lobbied individual EU countries, but not fully spelt out what its response to tariffs would be.
