Eco-Economic Balancing Act: The EU’s Approach to the China EV Trade Dispute
Johannes Nordin
The European Commission unveiled in June the long-expected preliminary results from the ongoing anti-subsidy investigation into Chinese Electric Vehicle (EV) manufacturers. Applicable from July 5, 2024, a new provisional tariff regime will apply to EV imports until November, when the EU Council at the latest must-have voted to either make the tariffs permanent or lift them, pending the results from the 13-month probe. However, reactions to the Commission’s initial findings have varied widely within the EU, and it also remains disputed how the tariffs will impact EU competitiveness and trade relations with China. This issue brief by Johannes Nordin elucidates the origins of the EV probe, the challenges facing the EU’s auto sector, initial tariff impacts and strategic goals, and the nascent political reactions to the probe.
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