European Union Imposes Tariffs On Electric Vehicles From China
Europe
Business
The European Union has recently imposed massive tariffs on electric vehicles( EVs) from China. This aims to control the entry of electric vehicles from China to Europe and safeguard the local EV manufacturing companies in European countries. This escalates the existing trade wars between China and Europe as China was hit by tariffs on EVs by 45% on 4th October 2024. The majority of the European Union members voted for the imposition, while Germany and Four other nations were against the vote. Just a few months ago, the United States of America imposed stringent tariffs on EVs from China. China is expected to react to these new developments. The tariffs are intended to level the playing field and protect European companies from what is seen as unfair competition. China is preparing to counter the tariffs imposed on its EVs, by hitting the European Union with tariffs on items such as brandy, daily, pork, and automobile sectors. There are also plans by China to impose tariffs on gasolene vehicles with large engine capacities from the European Union. This conflict raises questions on how it is likely to spill over and affect the global economy. Investor’s confidence in the EVs industry within the European Union is expected to improve as they feel that their investments are protected leading to an increase in the share prices of companies in the EVs industry. This could have however lead to low adoption of electric vehicles in Europe as a result of the increase in prices of electric vehicles from China. The world is watching as this conflict unfolds before them and how it will provide solutions not to be entangled in similar technological wars. The European Union must however note and appreciate China’s global dominance. It must work towards collaborations and creating synergies with China to ensure consumer protection, and meeting goals towards cleaner fuel for environmental protection. The world is no longer unilateral but rather multilateral, as different nations seek to dominate different spaces of the global economy. The future of electric vehicles is uncertain due to such bans by the European Union and the United States of America. China however is expected to be even aggressive in global dominance in electric vehicles, as it has been far segregated by the West and the US for a long time. Being the largest manufacturer of EVs globally, such tariffs will have little effect on the Chinese Economy, as the government continues to provide huge subsidies in the EVs sector. Such subsidies from China are spurring the growth of entities in the EV sector, resulting in the affordability of EVs and their adaption globally
3 MONTHS AGO