EU's High Stakes: Tariffs on China's Electric Vehicles

The European Union plans to impose tariffs on electric vehicles made in China, despite opposition from Germany. The move aims to counter Chinese subsidies but may spark retaliatory measures. With divisions among EU members, the dialogue with China continues under significant economic implications for the automotive industry.

The European Union is pushing forward with its plan to impose hefty tariffs on electric vehicles produced in China. This decision comes despite resistance from Germany, the EU's largest economy, highlighting internal divisions over the bloc's most intense trade dispute with Beijing in the past decade.

The proposed duties, which could reach up to 45%, are set to commence next month and last for five years. They are a response to what the Commission describes as unfair Chinese subsidies after a comprehensive investigation. Talks with China are ongoing, with potential compromises such as minimum sales prices on the table.

Tensions remain high, as some European nations worry that these tariffs could provoke counter-actions from China. While shares of local car manufacturers have risen in anticipation of reduced competition, concerns persist about possible retaliatory measures from the Chinese government affecting other industries.

(With inputs from agencies.)