The European Union announced that starting in July, it will impose an additional fee of up to 48.1% on electric vehicles imported from China, in addition to the existing 10% tariff. This move has shocked the automotive industry and strained China-EU trade relations. The EU aims to protect its local automotive industry through these tariffs, but trade experts argue that this is a protectionist measure that hinders economic globalization and the global green transition. China's Ministry of Commerce, the National Development and Reform Commission, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, the China Association of Automobile Manufacturers, and relevant Chinese automakers have all strongly opposed this measure. Foreign automakers like BMW Group and Volkswagen Group have also expressed their opposition.
The next day, China's Ministry of Commerce announced that starting in 2024, it would initiate an anti-dumping investigation into imported pork and pork products from the EU. According to Reuters, the EU’s tariff move has caused concerns across various industries. Besides the pork products industry, French brandy producers and the European dairy industry are also worried about the potential impacts.
European pork industry insiders and analysts believe that if China restricts European pork imports, the European pork industry will face a nightmare of falling prices and profits. Last year, China imported $6 billion worth of pork products, with over half coming from EU countries. Exporting parts like pig ears, snouts, and feet, which are not popular in Europe, helps increase the overall value of the pigs and provides a vital market for Europe. Halting these orders would result in significant business losses for the European pork industry.
Rabobank's global animal protein strategist, Sherrard, stated, “A complete halt of EU pork exports to China would be a nightmare for the pork supply chain and would affect the entire EU.” He questioned whether the EU could find alternative markets for these pork products.
German media widely believe that China’s countermeasure is a response to the EU's decision to impose tariffs on Chinese electric vehicles. Germany's Vice Chancellor and Minister of Economic Affairs and Climate Action, Robert Habeck, will begin a five-day working visit to South Korea and China on June 19. During this visit, he will discuss trade, climate protection, and energy policies. This visit marks the second high-level visit by German government officials to China this year, underscoring Germany's emphasis on its relationship with China.
On April 14 this year, German Chancellor Olaf Scholz made an official visit to China, accompanied by three cabinet ministers responsible for the environment, agriculture, and transport, as well as senior executives from major German companies such as Siemens, Mercedes-Benz, Bayer, and BMW. This showed Germany’s clear intention to strengthen practical cooperation with China and closely align their mutual interests. Just two months later, Vice Chancellor Habeck’s visit further indicates Germany's high regard for its relationship with China.
#EUChinaTrade #ElectricVehicleTariffs #ChinaPorkImports #TradeWar #EUAutomotiveIndustry
![](https://i.ytimg.com/vi/Fx8-JLpZr0E/maxresdefault.jpg)