The European Union unleashed one of its most powerful economic tools on China, imposing tariffs on electric vehicles in a move that increases the risk of retaliatory measures and backfiring on domestic consumers and companies.
The EU voted on Friday to boost tariffs as high as 45%, arguing that Beijing provides unfair subsidies to its carmakers. While the bloc is aligning with the U.S.¡¯ more aggressive approach to taking on Chinese trade practices, the latest move intends to comply with World Trade Organization rules.
French President Emmanuel Macron warned this week that Europe¡¯s economic model ¡°needs to be reset,¡± and failure to account for the U.S. and China¡¯s greater domestic investment and market protections could be an existential threat for the EU. The bloc¡¯s leaders are expected to unveil a new competitiveness roadmap next month.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.