By Muhammed Hashim 
- The battle between China and the European Union is heating up as the war over EV tariffs escalates.
- China has imposed a 30.6-39.0% tariff on European brandy and is considering higher tariffs on imported luxury cars.
- The country also retaliate further by imposing tariffs on European agricultural products like pork and dairy.
As the European Union moves closer to slapping huge tariffs on Chinese-made EVs, Beijing is beginning to fight back. The latest salvo comes in the form of “anti-dumping measures” aimed at brandy imported from the EU.
China’s Ministry of Commerce says the temporary measure will go into effect on Friday and see imports hit with a tariff ranging from 30.6% to 39.0%. The government said the move was in response to an investigation that found the “domestic brandy industry was threatened with substantial damage” from European imports.
More: EU Votes For Massive Tariffs On Chinese EVs, But Germany Isn’t Having It
This protectionist stance is similar to the one being made in Europe and the United States. Governments fear their auto industries could be decimated by cheap Chinese EVs, which is why we’ve seen a flurry of activity focused on tariffs and purposed bans.
A Ministry of Commerce spokesperson responded to the European Union’s recent vote on EV tariffs by saying “China firmly opposes the EU’s unfair, non-compliant and unreasonable protectionist practices.” They went on to suggest the move violates World Trade Organization rules and state “imposing tariffs will not solve any problems.” The spokesperson then made a not so subtle threat that “China will … take all measures to firmly safeguard the interests of Chinese companies.”
While brandy might have been the first target, it apparently won’t be the last as a spokesperson was asked about anti-dumping and anti-subsidy investigations regarding pork and dairy imports from Europe. They said work continues, but China will “fully protect the rights of all stakeholders, and make objective and fair decisions based on the results of the investigation.”
The spokesperson then pivoted and said “China is studying measures such as raising tariffs on imported large-displacement fuel vehicles” as the country will “take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese industries and enterprises.” Needless to say, this could impact German and Italian firms that offer high-performance and luxury vehicles with internal combustion engines in China.
H/T to Bloomberg
