EU Imposes Duties on Chinese Electric Vehicles Amid Trade Tensions

The European Union will enforce duties on Chinese electric vehicle imports starting Thursday, following unsuccessful trade talks. The trade dispute centers on the impact of Chinese government subsidies, which have led to increased market share and competitive pricing in the European EV market.

The European Union will begin imposing duties on imports of electric vehicles from China starting Thursday, following unfruitful discussions with Beijing to resolve their trade dispute, confirmed EU spokesman Olof Gill. The conflict has intensified around the influence of Chinese government subsidies, which have enabled lower pricing tactics in European markets.

Chinese electric vehicle sales skyrocketed from 3.9% of the EV market in 2020 to 25% by September 2023, partly by underpricing competitors in the EU, per the European Commission. This trend has escalated concerns over Beijing's advancing green technology exports and their impact on EU industries.

With significant implications for transcontinental trade, the duty imposition underscores the European Union's stance on protecting local manufacturers against what it perceives as unfair trade practices exacerbated by foreign subsidies.

(With inputs from agencies.)