Monday, June 3, 2024

Should Chinese EV be subject to steep tariffs?

The new America tariffs (100%) on Chinese EV are reasonable? The free trade benefits to the global economy will be put on hold? If the EV manufacturers are being heavily subsidized by China, there is WTO to tackle those issues (or it should if the appellate body was working) and the security reason is a double edge sword. What will Europe do? Lost in enacting the best regulation on this subject, but losing the sight of value generation? In fact, what we are seeing is that the Chinese EV manufactures are far ahead of the American and European’s manufacturers (in terms of value and price) but protecting this industry via tariffs, will protect inefficient industries, make them less competitive and complacent, create overall inefficiencies with the foreseeable trade retaliations and harm consumers. America’s 100% tariffs on Chinese EVs: bad policy, worse leadership https://www.economist.com/leaders/2024/05/15/americas-100-tariffs-on-chinese-evs-bad-policy-worse-leadership from The Economist

- Pedro

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