· 1 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Economist or enjoy below:
🗞️ Driving the news: The West and China are now clashing over electric vehicles (EVs). The US imposed a 100% duty on Chinese EVs in May, and Canada began investigating "unfair Chinese trade practices" in July
• The EU followed with a 37.6% provisional tariff on Chinese EVs, prompting China to consider whether these actions hinder free trade
🔭 The context: Western car manufacturers with significant operations in China fear repercussions
• This conflict mirrors previous tech disputes where China restricted American tech firms like IBM and Microsoft and advised officials against using Apple products, citing national security
🌍 Why it matters for the planet: The trade war impacts global EV market dynamics, potentially slowing the transition to sustainable transportation
• Tariffs and trade barriers could increase costs and limit the availability of EVs, affecting climate goals
⏭️ What's next: China is expected to examine the EU's tariffs for trade barriers, possibly leading to retaliatory measures
• The ongoing conflict could escalate, further disrupting global trade and affecting multinational companies
💬 One quote: "China’s ministry of commerce signalled it will not take the assault lying down.”
📈 One stat: The EU's provisional tariff on Chinese EVs is 37.6%
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