Final increase in import tariffs on Chinese cars: what are the implications?
Why this increase?
According to the European Commission, subsidies given by the Chinese government to its carmakers make electric cars from China much cheaper than their European competitors.
This gives brands such as MG and Xpeng an unfair advantage in the European market, Brussels said.
The increase in import duties is intended to counter this unfair competition and protect European industry.
Not everyone agrees
Despite support for this measure, not all EU member states were enthusiastic.
Germany and Hungary in particular fear the consequences.
They fear that China will backfire by imposing higher taxes on European products such as cars, dairy and meat.
This could have a major impact on the German auto industry in particular, which exports a lot to China.
What are the implications for consumers?
For European consumers, this increase could lead to significantly higher prices for electric cars.
As Chinese models become more expensive, the choice for affordable electric cars may decrease.
The question is whether Chinese brands will pass on the extra costs to consumers or absorb them themselves to maintain their competitive position in Europe.
Threat of a trade war
China has already signaled that it is considering raising its own import tariffs on European products in retaliation.
This could lead to a further escalation of the EU-China trade dispute.
Although the EU is trying to find a solution that complies with international trade rules, the situation remains uncertain and tensions between the two trading blocs may increase.