EU tariffs on Chinese electric vehicles remain likely

Significance

Spain recently called on the European Commission and member states to reconsider the tariffs, but it appears that there is not enough opposition to the measures to force the EU to abandon their imposition. China continues to look for a negotiated settlement, but the EU has rejected its proposals so far.

Impacts

• Should the EU states vote to impose extra tariffs on China, Beijing will respond with tariffs on imports from the bloc.
• Should the United Kingdom take a more hawkish stance on Chinese trade relations, it would likely do so in a cautious manner.
• China would most likely focus its retaliation on countries most supportive of the EU’s tariffs, such as France and Italy.