The News
The European Union is set to announce up to 45% import duties on China-made electric vehicles Wednesday, after negotiations between Brussels and Beijing to avert or mitigate the hike fell through.
The tariff hike is expected to trigger retaliatory measures, analysts said, including Beijing raising duties on European imports such as pork or brandy, or by freezing Chinese investment in EU member states.
While an overarching deal fell through, the EU reached deals with some individual carmakers, which Beijing criticized as an attempt to “divide and conquer.” Tesla EVs made in China, for instance, will only see a 7.8% hike. Ultimately, the hikes range from around 8% to more than 35%, to be imposed on top of the existing 10% tariff, Bloomberg reported.
Retaliation from China is widely expected to come after the Nov. 5 US presidential election, an expert on Chinese trade policy told the outlet: Both candidates have promised to raise tariffs on some Chinese goods, however Republican candidate Donald Trump has floated sweeping duties on all imports from China that could have far more significant economic implications for Beijing than the EU duties. “The only people more worried about the US election than Americans are the Chinese,” the expert added.