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Electric vehicles: EU/China trade spat highlights the plight of European automakers

Imposing tariffs would not be a straightforward win as it raises the possibility of a trade war

Electrical storms are characterised by much thunder and lightning. So, too, is the spat between the EU and China over the latter’s exports of cheap electric vehicles. The EU is threatening to impose import tariffs if it finds Chinese EVs. China is making retaliatory noises. The growing animosity is a reflection of the perilous place European carmakers find themselves in. 

Europe’s legacy car companies have a long, illustrious history producing internal combustion engines. Their heavy spend on branding has supported these types of products.

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