EU's Bold Tariff Move: A New Trade Era with China?

The EU plans to impose up to 45% tariffs on China-made electric vehicles, despite opposition from Germany, exposing divisions within the bloc. The proposed tariffs aim to counter perceived unfair Chinese subsidies. As divisions persist, talks with Beijing continue to prevent a potential economic cold war.

The European Union is set to impose substantial tariffs of up to 45% on electric vehicles manufactured in China, the EU executive announced on Friday. This decision stands firm, despite Germany's rejection, revealing a stark division in the bloc's most significant trade dispute with Beijing in a decade.

The tariffs, designed to address what the EU views as unfair Chinese subsidies, are the result of an extended anti-subsidy probe. While Germany opposes the move, countries like France, Italy, and Poland have shown support, ensuring the measure's likely passage.

This firm stance mirrors Europe's hardened view on China, with the bloc seeing Beijing as both a competitor and a potential partner. The ongoing negotiations with China highlight efforts to avoid a trade war, even as significant economic tension looms on the horizon.

(With inputs from agencies.)