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Getty Images Tariff wars: EU vs. China The European Union has raised tariffs on China-made electric vehicles to as high as 45.3% starting Wednesday, after a detailed anti-subsidy investigation that has been criticized by Beijing as well as the broader automaking industry.
The tariffs will likely intensify the trade war between the EU and China, although negotiations are expected to continue to reach an amicable solution. Dig deeper: In addition to the EU's standard 10% car import duty, EVs made in China will be subject to the following tariff rates: Tesla ( TSLA ) 7.8%; BYD ( OTCPK:BYDDF ) 17%; Geely ( OTCPK:GELYF ) 18.
8%; cooperating companies including XPeng ( XPEV ) and NIO ( NIO ) 20.7%; state-run SAIC and all other firms 35.3%.
The tariffs went into effect a day after they were published in the EU's Official Journal. Bigger picture: The additional tariffs were implemented to protect EU automakers from "unfair" competition as Chinese EV makers benefit from state subsidies, allowing them to flood the European market with cheaper cars. It also said China's spare EV production capacity significantly exceeds demand in China, and the Chinese market is nearly three times the size of the EU market.
China's response: "China does not agree with or accept the ruling and has filed a lawsuit under the WTO dispute settlement mechanism," a spokesperson for its commerce ministry said. "We also noticed that the EU side indicated it would continue to negotiate with China on price commitments," signaling more consultations to "avoid escalation of trade frictions." China is widely seen to have retaliated by imposing anti-dumping measures on EU brandy imports and investigating EU imports of pork and dairy products.
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6% . China -0.6% .
India -0.5% . In Europe, at midday, London -0.
3% . Paris -1.4% .
Frankfurt -0.9% . Futures at 7:00, Dow -0.
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