TECH - Deal Between Germany China Could Stop Looming Tit-For-Tat On EV Tariffs | Benzinga
Conversations are moving forward between China and the European Union on a deal that could benefit electric vehicle (EV) companies from both economic powerhouses.
Willingness from both sides to de-escalate a looming tariff war for the car industry can be read as an oasis of mutual trust within the growing trend of protectionism and economic decoupling that has marked relations between China and the West in recent months.
New Tariffs On EVs Threaten Carmakers In China, EU
Germany is fearful of the effects of a recent EU decision to slap an extra tax of up to 38% on some Chinese EV brands, on top of an already-existing tariff of 10%.
For some Chinese EV makers, like SAIC Motor Corp., this could mean a 48% tax on all units sent to the EU. Geely Automobile Holdings Ltd. (OTC:GELYF) could have its cars face a 30% tax and BYD Company ADR (OTC:BYDDY), 27%.
According to Bloomberg, Beijing has suggested that Germany could benefit if the EU were to drop the announced raise.
An agreement would primarily benefit luxury German brands like Mercedes Benz Group ADR (OTC:MBGYY), DR ...