In a move that has heightened tensions between the European Union and China, the EU has imposed tariffs on Chinese-made electric vehicles, with rates varying from 17.4% to 38.1%. German Economy Minister Robert Habeck has been at the forefront of the negotiations during his visit to Beijing, defending the tariffs as a necessary step to ensure fair competition and not as punitive measures against China. The tariffs are a response to what the EU perceives as unfair state subsidies provided to Chinese automakers and are set to take effect from July 4. China has criticized the EU’s actions, warning of a ‘commercial war’ and accusing the EU of making excessive information requests that could be an attempt to obtain commercial secrets. The Chinese government believes that the tariffs will harm both parties and has urged Germany to counter what it views as protectionist trends within the EU. The EU’s stance is part of a broader trend among Western democracies, with Canada also preparing potential tariffs on Chinese EVs to align with actions taken by the US and EU. The situation remains delicate, with Germany and China having signed a memorandum of understanding in June 2023 to work together on climate change and the green transition, highlighting the complexity of balancing economic interests with environmental cooperation. As the negotiations continue, the German automotive industry and other European companies are closely monitoring the potential impact of the tariffs and the possibility of a trade war with China.
Key points
- The EU has imposed tariffs on Chinese-made electric vehicles, with rates ranging from 17.
- German Economy Minister Robert Habeck is negotiating with Chinese officials in Beijing, defending the tariffs as a measure to level the playing field.
- China warns of a potential ‘commercial war’ and accuses the EU of excessive information requests.
- Canada is also preparing potential tariffs on Chinese EVs, reflecting wider concerns among Western democracies.
4% to 38.
1%.
