Europe Will Cripple China EV Imports

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In Europe, the US, and Canada, car makers are worried about whether Chinese EVs will be allowed into their markets. According to car researchers, the Chinese products are well made and priced as low as $15,000, which is well below what Tesla and the EVs made by legacy auto companies are.

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The latest battle to use high tariffs to block the low prices of Chinese EVs is in Europe. The European Commission voted to approve 45% tariffs on China’s auto imports. One argument in favor of the tariff is that Chinese car companies have received financial help from their government.

While many EU members approve of the tariffs, Germany may not. Its car companies have significant sales in China. If the country’s government, with the largest population in the world, blocks German cars as a retaliation, their sales and earnings could be badly hurt. On the other hand, Chinese car sales could hurt them in their home markets.

US Tariffs

The US has already taken action regarding Chinese cars, imposing a 100% tariff on them. GM and Ford would be badly crippled if their expensive EVs had to compete with Chinese models. However, Ford and GM sell cars in China, so they could also face a drop in sales there.

The tariff decision is not as easy as it seems.