The European Commission has announced new tariffs on electric vehicles imported from China into Europe going into force later this month.
The Kiel Institute for the World Economy (IfW Kiel) has already calculated that the added 20% fee would cost Chinese businesses $3.8 billion in lost profits. As a result, Chinese companies may decide to revise their EV shipment rates and leave customers in Europe without roughly 125,000 battery cars as a cost-cutting measure. The market niche thus emptied is supposed to be refilled by local EV offerings, bringing the local automakers the equivalent of $3.3 billion.
In turn, China has announced a counter-tariff of 25% for all electric cars imported into China from Europe. It remains to be seen what the cumulative economic effect from these opposing regulatory measures will be.