Germany looks to keep the peace by halting or at least softening incoming tariffs on Chinese EVs
What specific unfair advantages did the EU Commission identify regarding Chinese EV imports that led to the decision to impose tariffs?
The EU Commission identified that Chinese EV imports have an unfair advantage due to government subsidies. Following a probe that began last fall, the EU determined that these subsidies provided an unfair competitive edge to Chinese EVs in European markets. As a result, the EU announced plans to impose tariffs of up to 48% on Chinese EV imports.
What were the main findings of the EU Commission's probe into Chinese EVs that began last fall?
The EU Commission's probe into Chinese EVs, which began last fall, found that electric vehicles imported from China have an unfair advantage in European markets due to government subsidies. The investigation concluded that these subsidies were keeping the prices of Chinese EVs artificially low, which was seen as harmful to European industry. As a result, the EU Commission announced plans to impose tariffs of up to 48% on imported EVs from China in an effort to level the playing field5.
What retaliatory measures has China threatened against European-built models, and how do these compare to the EU's proposed tariffs?
China has threatened to impose tariffs of up to 25% on European-built models in retaliation for the EU's decision to investigate Chinese EV subsidies2. This move could potentially affect German automakers such as Volkswagen, Mercedes-Benz Group, and BMW, as they heavily rely on sales in the Chinese market. In comparison, the EU has announced plans to impose massive tariffs of up to 48% on Chinese EV imports, which they determined to have an unfair advantage due to local subsidies.