The 'tariff protectionism' in the bilateral and sometimes multi-lateral trade war is gathering more pace and visibility. The measure of introducing tariffs instead of embargos or other means to deplete imports has now been imposed by the European Union.
EU Imposes Additional Tariffs On Chinese EV
In a recent development, the European Union said that it would impose tariffs on China's fast expanding EV sector.
The old-continent will levy up to 38.1 per cent on these sophisticated EVs from China. The duties would be in the range of 17.4 per cent and the aforementioned 38.1 per cent.
This aggression from the EU, which has been largely dependent on China and its goods, comes barely a month after the US administration under President Biden imposed back-breaking tariffs on an array of products, including the coveted electric vehicles.
The US imposed a gargantuan tax of 100 per cent on its EVs. In addition, recently, Turkey, which is trying to promote its own EV maker, Togg also imposed tariffs on Chinese EVs. | FPJ Library
The US imposed a gargantuan tax of 100 per cent on its EVs. In addition, recently, Turkey, which is trying to promote its own EV maker, Togg also imposed tariffs on Chinese EVs.
EU Tries To Aid Its Auto Sector
For context, Chinese EV makers like Geely and BYD have replaced the automakers in the world, many of them from Europe, at a dramatic speed. A lot like the US, major European automobile manufacturers have struggled to cope in the EV race.
For Europe, which has generally witnessed a drop in its economic prospects, the manufacturing sector, especially the automobile sector, this shift is even more personal. Europe, which once relied on the large Chinese market, has been rendered rudderless ever since the change in Chinese policy and consumption.
The Chinese have doubled down on producing more to come out of their own economic slump | BYD Car (James Arbuckle)
The Chinese have doubled down on producing more to come out of their own economic slump while selling cars to their own native Chinese consumers, who are either not that keen on buying German, Italian, or French cars or do not have the consumption power to buy expensive European wagons. The has left European companies in a deficit of a large market.
The Russia-Ukraine war has not made things easy either. In addition, the Chinese have also aggressively produced and exported their cheaper EVs to Europe, leaving the traditional European motor giants in a tight space.
China, on its part, has come out and rebuked this new tariff. And they deemed this as another "typical case of protectionism".
