The European Commission imposed tariffs on Chinese electric vehicles, causing concerns about retaliation from Beijing. Despite this, EU’s trade official, Valdis Dombrovskis, remains confident in ongoing talks with China. The tariffs, ranging from 17.4% to 37.6%, aim to address unfair subsidies from Beijing, which European carmakers like Volkswagen criticize. However, Stellantis is focused on competitiveness rather than defense.
The EU initiated these measures following an investigation that highlighted Chinese industry subsidies, threatening Europe’s electric car market. China, also investigating EU imports, highlights escalating trade tensions. Meanwhile, German officials seek an amicable solution but acknowledge the need for Chinese cooperation.
Despite opposition from Germany, the tariffs will be enforced, with final decisions pending in autumn. Importers must provide bank guarantees, and companies like BYD and Geely will face varying tariffs. The EU hopes these actions will protect its car industry and prevent harm to millions of jobs.