Why the EU might be about to make Chinese electric cars more expensive

The European Union is gearing up to impose tariffs on Chinese electric cars amid concerns about the competitive advantage enjoyed by Chinese manufacturers. Chinese firms are reportedly able to produce electric cars at a significantly lower cost compared to their European and US counterparts. This has raised fears that the influx of cheaper Chinese electric cars into the European market could pose a serious threat to local manufacturers. The rapid growth of the Chinese electric car industry, fueled by substantial government subsidies, has put European and US manufacturers on edge. The fear is that the low prices of Chinese electric cars will undermine the market for European electric cars, making it difficult for local manufacturers to stay competitive. As a response, the EU is expected to raise tariffs on Chinese electric cars from the standard 10% to a range between 20 and 25%.