European Union hits Chinese electric vehicles with tariffs as high as 38%

The European Union has imposed additional tariffs of up to 37.6 percent on imports of electric vehicles (EVs) from China, citing unfair state subsidies. The move, announced by the European Commission, is set to begin on Friday despite warnings from Beijing about the potential for a trade war.

The Commission justified the tariffs by asserting that Chinese EV manufacturers were benefitting from state subsidies that were unfairly undercutting European carmakers. This decision comes after a year-long investigation into the matter.

While the tariffs are currently provisional, there is a four-month window for continued talks between the EU and China. The outcome of these discussions could have significant implications for the EV industry and the overall trade relationship between the two sides.

Al Jazeera’s Katrina Yu reports from Beijing on the latest developments in this escalating trade dispute. EU imposes tariffs of up to 38% on Chinese electric vehicles.