EU Increases Tariffs on Chinese Electric Vehicles

The European Commission has confirmed new import tariffs on Chinese electric vehicles (EVs), with rates up to 36.3%, following an anti-subsidy investigation. Tesla benefits from a reduced tariff of 9%, while companies like Nio and XPeng face increases to 21.3%. This shift has led to a significant decline in the shares of Chinese EV manufacturers, with Nio dropping 5.28% and XPeng nearly 6% on the same day they reported earnings. The Chinese Chamber of Commerce has condemned the tariffs as protectionist and warned they will escalate trade tensions. July sales figures for imported Chinese models fell by up to 45% compared to June, highlighting the immediate impact of the tariffs. Despite the downturn, analysts predict a long-term growth trajectory for Chinese EVs in Europe, especially with local manufacturing initiatives underway.