Will the EU Impose Tariffs on Chinese Electric Cars After the US?

The imposition of electric car tariffs by the White House has come as a surprise to many, but it is easily explainable. Despite the growing popularity of Chinese electric cars in other parts of the world, they have not made much of an impact in the US market. This is why the White House has implemented these tariffs as a precautionary measure, although some believe that it is also a way to signal to European allies to follow suit with electric car tariffs.

The EU has been ahead of the USA on this issue, with the EU Commission initiating an investigation into the subsidies that the Chinese government provides to its electric car manufacturers. French President Emmanuel Macron has been a strong proponent of electric car tariffs, urging for fair competition in the market. While some EU member states, like Germany, have concerns about the potential impact of tariffs on their automotive industry, others believe that it is necessary to respond effectively to China’s subsidies for electric cars.

Economists suggest that tariffs of 15 to 30 percent may be necessary to level the playing field. However, there are concerns that China may be able to minimize the damage from tariffs on its electric car sector by setting up factories in other countries like Mexico and Hungary. This move could potentially bypass tariffs and continue selling their cars at competitive prices. On the other hand, there is a possibility that EU manufacturers could suffer from retaliatory measures if they impose these tariffs.

Ultimately, it is up to the EU Commission to make suggestions about tariffs on electric cars. The final decision will be made by the EU Council. It remains unclear how EU member states will align on this issue, but there is a possibility that tariffs may be imposed to address China’s unfair subsidies provided to its electric car manufacturers.

By Sophia Gonzalez

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