China Challenges EU Tariffs on EVs

a { color: #880000 !important; background: #ffeeee !important; } China Challenges EU Tariffs on EVsBusiness > TradeChina has filed a lawsuit with the WTO against the EU's newly imposed tariffs on Chinese electric vehicles, which can reach up to 35.3%. The tariffs, seen as protectionist measures, have raised concerns about escalating trade tensions and potential retaliatory actions from China.

What's happened

China has filed a lawsuit with the WTO against the EU's newly imposed tariffs on Chinese electric vehicles, which can reach up to 35.3%. The tariffs, seen as protectionist measures, have raised concerns about escalating trade tensions and potential retaliatory actions from China.

Why it matters

What the papers say

According to Business Insider UK, China's commerce ministry criticized the EU's tariffs as lacking a 'factual and legal basis' and violating WTO rules. Bloomberg reported that Beijing aims to safeguard its EV industry's development interests, labeling the tariffs as trade protectionism. The New York Times highlighted that the EU's investigation into Chinese subsidies was prompted by a surge in market share of Chinese EVs, which rose from 3.9% to over 20% in just three years. The South China Morning Post noted that the tariffs could lead to retaliatory measures from China, including investigations into European exports. This multifaceted perspective illustrates the complexities of the trade relationship between China and the EU, with both sides facing pressure from their respective industries.

How we got here

The EU's tariffs on Chinese electric vehicles stem from an investigation into subsidies that Chinese manufacturers receive, allowing them to undercut European competitors. The tariffs were finalized after negotiations failed to yield a resolution.

Ask Charlie

Common question

How Will China's Lawsuit Against EU Tariffs Impact Electric Vehicle Prices?
China's recent lawsuit against the EU's tariffs on electric vehicles (EVs) has raised significant questions about the future of the EV market. With tariffs reaching up to 35.3%, consumers and industry stakeholders are eager to understand the implications of this trade dispute. Below, we explore the potential consequences of these tariffs and what they mean for the global automotive industry.

More on these topics

European Union -

The European Union is a political and economic union of 27 member states that are located primarily in Europe. Its members have a combined area of 4,233,255.3 km² and an estimated total population of about 447 million.
China - Country in East Asia

China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
BYD - Multinational conglomerate company

BYD Company Limited or BYD is a publicly listed Chinese multinational manufacturing conglomerate headquartered in Shenzhen, Guangdong, China.
Tesla, Inc. - Vehicle manufacturer

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid scale and, through its acquisition of SolarCity, solar
World Trade Organization - Intergovernmental organization

The World Trade Organization is an intergovernmental organization that is concerned with the regulation of international trade between nations.
SAIC Motor - Automotive manufacturer

SAIC Motor Corporation Limited is a Chinese state-owned multinational automotive design and manufacturing company headquartered in Shanghai, China.
Volkswagen - Automaker company

Volkswagen, shortened to VW, is a German automaker founded in 1937 by the German Labour Front, known for the iconic Beetle and headquartered in Wolfsburg.
Ursula von der Leyen - President of the European Commission

Ursula Gertrud von der Leyen is a German politician and the president of the European Commission since 1 December 2019. She served in the federal government of Germany from 2005 to 2019 as the longest-serving member of Angela Merkel's cabinet.
European Commission - Governing body of protected sites

The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.
Donald Trump - 45th U.S. President

Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
Mercedes-Benz - Luxury vehicles company

Mercedes-Benz is both a German automotive marque and, from late 2019 onwards, a subsidiary of Daimler AG. Mercedes-Benz is known for producing luxury vehicles and commercial vehicles. The headquarters is in Stuttgart, Baden-Württemberg. The name first ap