The European Union has increased tariffs on Chinese electric vehicles (EVs) to safeguard its motor industry.
These new tariffs, ranging from 17.4% to 37.6%, are in addition to the existing 10% duty on all imported electric cars from China, according to the BBC.
Experts have warned that a titi-for-tat war between the world’s economies could undermine the world’s gradual transition from fossil fuels.
EV Tariffs War
The new tariff hike could raise the prices of EVs in the EU, making them less affordable for consumers in the bloc.
EU officials claim that the surge in Chinese imports is due to “unfair subsidization,” allowing China-made EVs to be sold at much lower prices than those produced in Europe.
China has consistently denied allegations from the US and the EU that it subsidizes excess production to flood Western markets with cheap imports.
The move is a significant setback for Beijing, which is already engaged in a trade war with Washington.
