E.U. Imposes Higher Tariffs on Chinese Electric Vehicles

The European Union announced yesterday that it will impose additional tariffs of up to 38 percent on electric vehicles (EVs) imported from China. This measure aims to shield European manufacturers from what leaders describe as unfair competition. This decision follows the U.S.'s recent move to increase its tariffs on Chinese EVs to 100 percent.

According to Jim Tankersley, an expert on U.S. economic policy, "By making it more expensive for consumers to buy lower-cost Chinese imports, the tariffs could slow adoption of electric vehicles in Europe — and also slow progress on emissions reduction."

However, Tankersley also noted that these tariffs might help prevent job losses among European automakers. "That protection could help to maintain political support for green initiatives at a time when Europe’s decarbonization efforts are increasingly drawing backlash from voters who are upset with rapid price increases in recent years," he added.