Additional tariffs threatened by the European Union could see up to a 38.1 per cent increase in the costs of certain electric cars coming from China into Europe under proposals. But officials have agreed to talk about these prospective tariffs the EU could slap on car makers from China.that German Vice Chancellor and Economy Minister, Robert Habeck, welcomed the move to talks and that it was ‘a first step, and many more will be necessary.
On top of that, the EU Commission said that, under this prospective tariff increase, would apply to other EV makers. If those car makers ‘cooperated in the investigation,’ they’d be subject to a 21 per cent duty. If they didn’t, that duty would increase to 38.1 per cent. The United States is at it, too, as President Joe Biden hiked up tariffs on electric cars from China. In a statement by The White House, the US imposed a 100 per cent tariff rate on EVs ‘to protect American manufacturers from China’s unfair trade practices.’ The move was also designed to protect the US’s investments into developing its own EV manufacturing supply chain.Not great, obviously.
‘I’m not a big fan of tariffs – they’re something that impede free trade. Tariffs lead to dangers if they’re increased – they drive inflation and interest rates and could lead to situations where things are done twice. That’s simply not efficient and goes against the efforts to fight climate change.’
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