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EU Imposes Tariffs On Electric Cars From China
Why EU Imposed Tariffs
After a four-year investigation, the EU has imposed tariffs of up to 21.8% on electric cars imported from China. The investigation found that Chinese electric car manufacturers were receiving unfair subsidies from the Chinese government, which allowed them to sell their cars in Europe at below-market prices. The EU also found that Chinese electric car manufacturers were engaging in "dumping," which is selling their cars at below cost in order to gain market share.
Impact Of Tarrifs
The tariffs are expected to have a significant impact on the Chinese electric car industry. Chinese electric car exports to the EU totaled $1.8 billion in 2021, and the tariffs are expected to reduce that number by as much as 50%. The tariffs are also expected to lead to higher prices for electric cars in Europe.
Reaction of Chinese Government
The Chinese government has criticized the EU's decision to impose tariffs, calling it "protectionist" and "unfair." The Chinese government has also threatened to retaliate by imposing tariffs on European goods.
Conclusion
The EU's decision to impose tariffs on electric cars from China is a major development in the global trade dispute between the two sides. The tariffs are likely to have a significant impact on the Chinese electric car industry and could lead to higher prices for electric cars in Europe.