EU Tariffs on Chinese EVs: A New Trade Tactic

The European Commission has secured approval from member states to impose tariffs on Chinese electric vehicles. Negotiations with China will continue, seeking a WTO-compatible resolution for addressing the subsidies. The aim is to find a solution that is effective, enforceable, and adequately monitored.

The European Commission announced that it has received the green light from member states to implement definitive tariffs on electric vehicles produced in China. This marks a significant step in the EU's trade measures aimed at combatting perceived unfair subsidies.

Nonetheless, the Commission is set to pursue ongoing negotiations with China. The objective is to identify a solution aligned with World Trade Organization (WTO) standards, which effectively addresses the subsidies issue cited by the Commission's investigation.

The EU expects any agreement to be strictly monitored and enforceable, ensuring that the subsidization that has caused trade disputes is rectified adequately.

(With inputs from agencies.)