China threatens tariffs up to 25% on imports in retaliation for EU probe, US tariffs on EVs
Ten days after the Biden administration introduced a 100% tariff on on several categories of Chinese goods, including EVs, China has threatened to retaliate with tariffs on its own vehicle imports. Those threats are also targeted at the EU, as China’s Ministry is requesting the results of a recent probe while imploring Europe not to take the same action as the United States.
Trade tensions have continually risen among China, the European Union, and the US in recent years, with much of the drama surrounding imported EVs. Automakers in China, arguably the global leader in BEV technology and the most saturated market for New Energy Vehicles (NEVs), have begun expanding to new regions, including Europe.
Notable automakers like NIO, XPeng, BYD, and ZEEKR have all introduced multiple BEVs to countries in the EU, delivering advanced technology and luxury features at very competitive prices. The country has begun exporting so many EVs to Europe that automakers struggled to find ships to deliver them.
The new entry perturbed local EU automakers, some of which have lagged in EV adoption, inciting a probe into the Chinese automakers that the European Commission eventually determined have been “unfairly” subsidized as exports into the region. As a result, Europe has threatened tariffs on imports of vehicles built in China.
Across the pond, the US has already taken stern action on international trade with China, although none of the foreign automakers mentioned above have begun selling their EVs there. In late March, China’s Ministry of Commerce filed a complaint to the World Trade Organization targeting the US’ Inflation Reduction Act, deeming the policy unfair while imploring the US to play fair and follow the organization’s trade rules, citing the need for more EVs more quickly to battle climate change.
Instead, the Biden administration recently bolstered tariffs on goods originating from China, including solar panels, batteries, medical supplies, and, of course, EVs. Those tariffs have been increased from 25% to 100%, raising tensions between the two global superpowers.
As a response, China is threatening tariffs of its own with hopes the EU won’t opt for the same route the US took.
China poised to introduced tariffs as high as 25%
Per Automotive News Europe, the EU’s China Chamber of Commerce has been informed of the foreign nation’s threats of 25% tariffs from “insiders.” If enacted, the tariffs could significantly affect the businesses of US and EU automakers exporting ICE vehicles into China and would most certainly fuel international tensions that are already strained.
The threats from China have been tactful as we approach a deadline the country has given the EU to share the results of its probe on imported BEVs and unfair subsidies. Per reports, The EU has until early June to declare whether it also intends to impose tariffs on products from China, but the European Union doesn’t appear fazed by the threats. Eurasia Group analysts shared a note earlier this week:
China’s retaliatory trade investigations and warnings are not deterring the EU. Brussels is eager to send a strong signal to Beijing with its EV probe that the EU will counteract Chinese subsidies and overcapacity.
According to China’s Ministry of Commerce tariff page, the tariff on vehicles with engines larger than 2.5 liters imported from Europe is 15%. However, import tallies in that segment from 2023, World Trade Organization policies permit China to increase that number to a 25% fee on every large engine vehicle coming in.
To show it is serious, China has also alluded to the possibility of imposing additional tariffs on products coming over from Europe, including wine and dairy products.
As the largest producer of electric vehicles in the world, China has cause for concern about the current and looming threats of tariffs from its international trade partners. Trust that the global market has an eye on this situation, which could prove detrimental to the speed at which EV adoption grows worldwide.
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Environment
Podcast: Apple CarPlay in Tesla cars, VW on Superchargers, Toyota electric pickup, and more
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Apple CarPlay possibly coming to Tesla cars, VW getting access to Superchargers, a Toyota electric pickup, and more.
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US EV sales declined in October following the expiration of the $7,500 federal tax credit on September 30, and the average transaction price (ATP) edged up, according to initial estimates from Kelley Blue Book, a Cox Automotive brand. However, there are still deals to be had.
Kelley Blue Book’s initial estimates show that US EV sales fell to 74,835 in October, down 48.9% from September, which was a record month, and 30.3% year-over-year.
Prices also ticked up. The average transaction price (ATP) for a new EV climbed 1.6% month-over-month to $59,125, which is 2.3% higher than a year ago.
Tesla didn’t escape the downturn, but it held up better than the overall EV market. The company’s ATP fell 1.1% from September to $53,526, and its prices are 5.5% lower than they were in October 2024. Sales of the Model 3 and Model Y both declined month-over-month, and overall Tesla sales decreased by 35.3% from September and 23.6% year-over-year, which are smaller declines compared to the broader EV segment.
Cox Automotive senior analyst Stephanie Valdez Streaty said the shift wasn’t surprising:
We expected this shift in the electric vehicle market. With the IRA-backed sales incentives gone, lower-cost EV volume was hit hard, pushing the mix toward more luxury and driving October’s EV ATP to a 2025 high of $59,125 – now $9,359 above the industry average. Affordability has always been the core challenge with EV sales, and this reset only underscores how critical it is to bring more attainable EV options to market.
Electrek’s Take
September was a record-breaking month for both EV deals and sales. Dealers were offering all sorts of sweet incentives to stack with the federal tax credit to move cars off the lot. October’s sales drop was entirely anticipated, like a pounding headache after a big blowout party.
We didn’t know what the post-federal tax credit EV market would look like. As Valdez Streaty rightly states, EVs do have a higher ATP than the industry average. But it turns out that, so far, it’s not all doom and gloom, and the federal tax credit isn’t the only incentive in town.
Every month, I compile great EV lease deals, and for the last few months, some EVs’ monthly lease payments have been cheaper than before the federal tax credit expired. Many states are still offering rebates on EV purchases, and dealers still have really good deals. While cheaper models would definitely be welcome, there are good deals available right now.
And let’s not forget the fact that EVs are much cheaper to drive than gas cars, with or without that tax credit.
Read more: From $189 a month: 5 of the best EV lease deals in November [Updated]
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The Oshkosh-built Striker Volterra Electric Aircraft Rescue and Fire Fighter (ARFF) packs advanced battery technology to deliver ultra-fast emergency response performance no matter how long it needs to be in action — and Dallas Fort Worth International Airport just put six of the awesome 6×6 machines to work!
Oshkosh has been manufacturing ARFF vehicles since it first launched the MB-5 for use by the US Navy back in 1968, and they’ve been pushing the envelope of disaster response performance ever since. The company’s latest ARFF, the Striker Volterra Electric shown here, features a slanted body with front bumper designed for maneuvering through the ditches and rough terrain they might encounter on a damaged runway. It’s also big — but it’s big for a purpose. Because ARFF vehicles don’t have to navigate the confines of city streets, they can be built bigger, carry more water, more rescue equipment, and more personnel than conventional fire trucks.
As the newest members of the DFW Fire-Rescue fleet, these Striker Volterra Electric ARFF vehicles represent a significant step in DFW’s broader plan to replace its legacy fleet with a modern, electrified response system, while also making DFW the largest Striker Volterra Electric ARFF fleet operator in the US.
“Enhancing performance by reducing response times is the key driver of transitioning to these new vehicles,” said Daniel White, DFW Fire-Rescue Chief. “The Striker Volterra vehicles are faster and more agile than our current fleet. Because they are also safe for our firefighters and conscious for the environment, this investment represents a rare win-win-win, delivering operational benefits while ensuring the safety of our responders and the community we serve.”
The Striker Volterra Electric 6×6 ARFF uses a proprietary Oshkosh electric powertrain and an electro-mechanical infinitely variable transmission (read: CVT) paired to an integrated diesel generator. The setup enables zero-emission electric operation during normal station entry, standby, and low-speed tasks, eliminating firefighter exposure to their ARFF’s diesel exhaust 99% of the time. For sustained high-power demands during active fire suppression, the system seamlessly draws from both the battery and generator, ensuring uninterrupted pumping power and performance without operator intervention.
“Our commitment goes far beyond delivering a vehicle,” said Travis Ownby, sales specialist with Siddons-Martin Emergency Group. “It’s about helping departments like DFW Fire-Rescue lead the way in operational excellence and sustainability. We’re proud to support their mission with the Striker Volterra Electric ARFF vehicles.”
The addition of the Striker Volterra Electric ARFF vehicles also supports DFW’s transition to fluorine-free firefighting foam in line with FAA guidance and the industry’s move away from PFAS-based agents for a more environmentally responsible response capability across the airport.
Electrek’s Take
With the relatively short distances driven and extreme loads involved, airports present a nearly ideal use case for battery-electric vehicles in general, and their immediate off-the-line torque, improved efficiency, and ability to operate much more quietly than diesels (facilitating emergency crews’ communications) could make all the difference in an emergency situation where lives are quite literally on the line.
Plus, as demand for on-road fossil fuels drops, airports and airlines (historically responsible for about 4% Earth’s global warming) are becoming a bigger and bigger slice of a rapidly shrinking pie when it comes to fossil fuel emissions. Or, as OshKosk put it, “As airports continue to prioritize sustainability and operational efficiency, the Striker Volterra electric ARFF stands out as a forward-thinking solution that meets today’s demands while preparing for tomorrow’s challenges.”
It’s a bit pitchy, but I couldn’t agree more.
SOURCE | IMAGES: Oshkosh.
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