The EV trade war between China and the West heats up

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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