EU-China Trade Clash: New Tariffs on Electric Vehicles Spark Controversy

The European Union is increasing tariffs on Chinese electric vehicles up to 45.3% following a high-profile investigation. The decision stems from concerns over unfair subsidies. While the EU sees tariffs as protective, Beijing deems them protectionist, straining EU-China relations. Germany opposes the move, emphasizing open markets.

The European Union is escalating its trade dispute with China by imposing tariffs as high as 45.3% on Chinese-built electric vehicles. This decision follows a significant investigation that has divided Europe and has already prompted a retaliatory stance from Beijing.

The new tariffs, approved on Tuesday by a senior EU official, will come into effect immediately after being published in the EU's Official Journal. These tariffs are in response to what the EU sees as unfair subsidies provided by China, such as preferential financing and below-market rates for land and raw materials.

Reaction to the tariffs has been mixed within the EU. Germany, a key economy and car producer, opposed the tariffs, advocating for open markets. Meanwhile, political leaders like Hungary's Prime Minister Viktor Orban warn of an 'economic cold war' with China, while others like France's PFA car association support the tariffs for ensuring fair trade.

(With inputs from agencies.)