Trade between the US and Germany is growing. Concerns over China might be driving the shift.
Business InsiderJul 01
EU Announces Tariffs on Chinese-Made Electric Vehicles
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Above: Attendees look around the NIO of ET5 during the 2023 Central China International Auto Show on May 25, 2023 in Wuhan, Hubei province, China. Image copyright: Getty Images/Stringer/Getty Images News via Getty Images
The Facts
On Thursday, the European Union (EU) announced that tariffs on Chinese-made electric vehicles (EVs) would come into effect on Friday. The duties imposed range from 17.4% to 37.6%.
The move was spurred by an EU investigation into how Chinese EVs benefit from government subsidies, with the final report alleging that subsidization has kept prices artificially low enough to harm the European auto industry and put 12M jobs at risk.
The Spin
Pro-China narrative
Free trade is fair trade, and the EU and other Western countries have determined that they can't win on a level playing field. China has become the world leader in EVs, and we all benefit from their innovative practices. European automakers will also lose out on access to the huge Chinese market, as a petty political rivalry overshadows the real value Chinese manufacturers bring to the table.
Anti-China narrative
Government money floods nearly every stage of the manufacturing process at Chinese automakers, and it is clear that the intent of this is to flood the market with EVs at rock-bottom prices to snuff out the EU's auto trade. These tariffs are a measured response against anti-competitive practices and are targeted to punish the least transparent and most uncooperative automakers.
