Why Biden’s monster EV tariffs could inflame a Europe-China trade war

“I’m determined that the future of electric vehicles will be made in America by union workers,” Biden said Tuesday. But the real battleground over EVs may lie far beyond US shores — in Europe. The United States currently buys very few EVs from China. It’s a very different matter in Europe — by far the biggest export market for Chinese EV manufacturers.

That’s also because they could ultimately hurt European automakers, many of which manufacture cars in China that they then sell in Europe. On an earnings call with reporters last week, BMW CEO Oliver Zipse warned Europe to proceed with caution. “We don’t think that our industry needs protection,” he later told analysts, adding that operating on a global basis is an advantage. “You can easily endanger that advantage by introducing import tariffs.

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