· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on POLITICO or enjoy below:
🗞️ Driving the news: The EU and China are in last-minute negotiations over Chinese electric vehicle (EV) subsidies, attempting to avoid a potential trade war
• Talks focus on setting voluntary minimum prices to offset Chinese subsidies, which the EU claims unfairly lower EV prices, threatening European manufacturers
🔭 The context: The EU launched an anti-subsidy probe, finding that Beijing's support for its EV industry distorts competition
• Germany, concerned about retaliation and economic fallout, has opposed tariffs but has been unable to gain enough support to prevent potential EU duties of up to 35%
🌍 Why it matters for the planet: Resolving the dispute without tariffs could stabilize the global EV market and avoid damaging trade relations, which are crucial for the green transition
• It would also prevent retaliatory measures from China, which has already initiated probes into EU exports
⏭️ What's next: If no deal is reached, the EU may impose tariffs on Chinese EVs within days
• Talks continue in Brussels as both sides aim to strike a balance before triggering a broader trade conflict
💬 One quote: “Germany has fought a rearguard action against imposing EV duties for months,” reflecting its concern over the economic risks of a trade war with China
📈 One stat: Potential EU tariffs on Chinese EVs could reach up to 35%
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