The European Union and the U.S. are imposing tariffs on Chinese electric vehicles (EVs), but their approaches vary significantly. The EU finalized duties of 17% to 35% on Chinese EVs, targeting what it calls “unfair subsidies” that enable Chinese automakers to undercut European competitors.
In contrast, the Biden administration is set to raise tariffs to 100%, effectively blocking most Chinese EV imports. President elect Donald Trump has also threatened to significantly raise tariffs on Chinese EV imports.
In terms of scale, China’s EV market share in Europe surged to 25% by 2023, raising fears of job losses in the EU’s auto industry. The EU aims to level the playing field while still allowing affordable EV imports to meet emission reduction goals. Meanwhile, the U.S. tariffs prioritize protecting domestic producers.
Chinese automakers, such as BYD, are already planning European factories to avoid tariffs. Talks between the EU and China continue, but tensions remain high.
