Trade wars escalate as Chinese automakers request retaliatory tariffs on cars imported from EU
As anticipated, China and its massive network of EV OEMs are not pleased with the EU Commission’s recent decision to impose tariffs on Chinese-built vehicles. In retaliation, Chinese automakers have implored their government to increase tariffs on imported European cars.
Today’s automotive trade news is the latest jab thrown in an ongoing bout between China and Europe. Following an anti-subsidy probe that began last fall, the EU Commission determined that Chinese-built EVs have an unfair advantage in European markets.
Even before the commission shared the results of its probe, the EU was already threatening tariffs on Chinese imports, following the lead of the US, which recently upped tariffs to 100%. As China awaited the probe’s results, it threatened tariffs of its own against European automakers, vowing to implement upcharges up to 25% on gasoline vehicles imported into China.
EU automakers like BMW, Volkswagen Group, and Mercedes-Benz could be directly affected by tariffs in China. As a result, Germany has already publicly spoken out against tariffs on Chinese EVs in hopes both sides can reach a trade resolution before they take effect.
Meanwhile, despite the looming tariffs, Chinese EV automakers have expressed a steeled resolve to continue expanding into European markets. Locally, however, those same OEMs are requesting the Chinese government raise the proposed tariffs on EU automakers.
Chinese OEMs want higher tariffs on EU imports
According to the Chinese state-backed Global Times newspaper, local EV automakers have urged Beijing to hike its tariffs on combustion vehicles imported from Europe in retaliation for the EU Commission’s recent actions to deter Chinese-made EVs in markets overseas.
The report states that China’s Ministry of Commerce held a meeting in Beijing on Tuesday with big names in automotive, such as SAIC, BYD, BMW, Volkswagen, and Porsche. During the meeting, Chinese OEMs called on their government to “adopt firm countermeasures (and) suggested that positive consideration be given to raising the provisional tariff on gasoline cars with large-displacement engines.”
Mercedes-Benz, Stellantis, and Renault were reportedly also present. The meeting appears to have been a rallying attempt to get EU automakers to help pressure the Commission in Brussels to at least ease tariffs, if not nix them altogether.
German automakers have a lot of skin in the game in markets on both sides of the world, and their attendance in Beijing proves that Europe’s automotive leader is, at the very least, trying to ease trade tensions.
Earlier today, the EU Commission acknowledged the retaliatory threat of Chinese tariffs and appeared open to negotiating, stating it is monitoring the situation “with a view to discussing if a mutually agreeable solution can be found.”
The EU’s tariffs on Chinese-made EVs are currently slated to take effect on July 4, 2024, so there’s still time for the two regions to reach a solution.
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Environment
U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
Oil futures, 5 years
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)
What’s going on in Illinois?
While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.
SOURCES: Chicago Business, Ray Cunningham; featured image by the author.
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The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.
We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.
SOURCE | IMAGES: XCMG.
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