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illuminem summarizes for you the essential news of the day. Read the full piece on the Financial Times or enjoy below:
🗞️ Driving the news: The European Union plans to impose tariffs of up to 48% on Chinese electric vehicles (EVs), despite warnings from Germany about potential trade conflicts with China
• The tariffs, starting next month, aim to counter the threat posed by heavily subsidized Chinese EV imports to the EU industry
🔭 The context: The EU's investigation found that the Chinese EV supply chain benefits from significant state subsidies
• Major Chinese exporters like BYD and Geely will face tariffs of 17-20%, while non-cooperating companies could be hit with a 38% tariff
🌍 Why it matters for the planet: Tariffs on Chinese EVs, which are typically 20% cheaper than EU-made models, could impact the global green transition by hindering the growth of the EV market in Europe and increasing costs for consumers
⏭️ What's next: If no resolution is reached with China, the duties will take effect from July 4
• Member states will vote on the tariffs before November 2, potentially making them permanent for five years
💬 One quote: “The EU fabricated and exaggerated the so-called subsidies. This is a naked protectionist act,” stated China’s commerce ministry in response to the EU's decision
📈 One stat: China exported €10 billion worth of electric cars to the EU in 2023, doubling its market share to 8% last year
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