China and Europe engage in talks over tariffs on Chinese electric cars | Investing.com
China's commerce ministry reveals ongoing technical discussions with the European Union regarding potential tariffs on Chinese electric vehicles. The European Commission is expected to announce import tariffs of up to 37.6% on Chinese EVs, citing concerns of heavy state subsidies. EU trade policy shifts towards protectionism amid fears of a flood of cheap Chinese goods in the European market. China denies unfair subsidies on its EVs and calls for rational consultations to avoid trade tensions. EU countries remain divided on supporting additional tariffs, with Germany opposing and France backing the measures. China retaliates with anti-dumping inquiries into European brandy and pork imports, targeting specific EU countries to sway support in trade disputes. Stay tuned for updates on this crucial trade issue that could impact global markets and trade relations.
Analysis: The ongoing trade dispute between China and Europe over tariffs on Chinese electric cars has the potential to disrupt global trade flows and impact the auto industry. If the European Commission proceeds with import tariffs, Chinese EV manufacturers could face increased costs and reduced access to the European market. This could lead to retaliatory measures from China, further escalating trade tensions between the two economic powerhouses. Investors should monitor developments closely and consider the potential implications on their investment portfolios, particularly in the automotive sector.