The EU Joins the EV Trade War
The EU has imposed tariffs up to 38% on Chinese electric vehicles to protect its automotive industry amid rising imports, facing internal divisions and economic challenges for European manufacturers.
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The European Union (EU) has recently imposed significant tariffs on Chinese electric vehicles (EVs) as part of a broader trade conflict aimed at protecting its automotive industry. Following a year-long anti-subsidy investigation, the European Commission approved tariffs reaching up to 38% on certain Chinese manufacturers, although these are less severe than the 100% tariffs imposed by the United States. The EU's decision comes in response to a surge in Chinese EV imports, which have drastically reduced the EU's vehicle trade surplus with China. In the past year, the EU imported over €11.3 billion worth of Chinese EVs while exporting only €1.36 billion worth of European vehicles to China. The tariffs are intended to curb this trend, but the EU faces internal divisions regarding their implementation, with key economies like Germany opposing the move due to potential economic repercussions. Additionally, the tariffs do not address the EU's reliance on Chinese batteries and solar panels, which are crucial for EV production. European car manufacturers are already experiencing economic challenges, and the tariffs may exacerbate these issues if a resolution to the trade conflict is not reached. The situation reflects a growing backlash against China's dominance in the EV market and highlights the geopolitical tensions affecting global supply chains.
- The EU has imposed tariffs up to 38% on Chinese EVs to protect its automotive industry.
- The tariffs follow a significant increase in Chinese EV imports, reducing the EU's trade surplus.
- Internal divisions within the EU complicate the implementation of these tariffs.
- The tariffs do not address the EU's dependency on Chinese batteries and solar panels.
- European car manufacturers are facing economic challenges, which may worsen due to the tariffs.
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2 commentsFor years legislators demanded new security features in cars with the hope to at least protect the local market. Part of these security features are indeed sensible while others can only be described as experimental unproven technology, that can even be dangerous in some cases. Systems that do emergency breaking for example would require similar sensory information to autonomous driving.
Ironically, this had a net negative effect. While foreign cars did indeed have difficulties on EU markets, cars got significantly more expensive in general. So much so that building basic smaller cars has become unprofitable. This has again a negative effect on the environment and the price of cars, which are now even more uncompetitive on other markets.
Sure, large EU manufacturers have special versions for foreign markets, mostly far cheaper than the European alternative.
Not every safety feature is senseless, but I would dispute that something like lane control should be mandatory. A feature any driver I know more or less immediately turns off anyway.
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