CHINA Hold Import from EU: What Next?

In response to the European Union's (EU) decision to impose tariffs of up to 38.1% on Chinese electric vehicle (EV) imports, China has announced plans for retaliatory measures. These potential countermeasures include tariffs of up to 25% on imported vehicles from the EU and the United States. This move is seen as a response not only to the EU's tariffs but also to the increased tariffs by the US on Chinese goods, including EVs.

Additionally, China has initiated an anti-dumping investigation into EU pork products, which is considered a preliminary step towards broader retaliatory actions. This investigation could lead to increased tariffs or other restrictions on EU agricultural exports to China, such as pork and dairy products.

The tensions between China and the EU are part of a broader context of trade disputes, with the EU aiming to protect its local EV industry from what it views as unfairly subsidized Chinese competition. European automakers have expressed concerns about these measures, fearing they could lead to a tit-for-tat escalation in trade barriers