EU Tariffs: How China Should Respond (Part 1)

"China could impose tariffs on EU agricultural products, wine and Airbus ... Such tariffs should of course also include imposing duties on European cars (including fuel-powered vehicles)"

Last week, the European Union announced that it would begin levying provisional tariffs of between 27% and 48% on imports of electric vehicles (EVs) from China in July (compared with 10% until now). The decision follows an anti-subsidy investigation that was launched last year by Brussels. EV producers in China will have different tariffs imposed depending on the extent to which they complied with this investigation.

Beijing was quick to denounce this measure as “blatant protectionism” that lacked a “factual and legal basis”. It has also stated that it would “take every necessary measure” to safeguard the interests of Chinese companies.

On Monday, China announced that it had opened an anti-dumping investigation into EU pork imports. Although this has been described as a relatively timid response, it is probably best viewed as yet another, louder, warning shot in the direction of the EU and its member states, in the hope that Brussels will eventually reduce, if not cancel, these tariffs.