Part 4/7:
Electric Vehicles: A Case Study in Tariff Impact
The electric vehicle (EV) sector stands out as a critical focal point for evaluating the impact of these new tariffs. Chinese EV manufacturers have gained attention for selling vehicles at significantly lower prices, purportedly due to government subsidies. In response, countries around the world have started imposing their tariffs on Chinese electric vehicles.
For instance, the USA has enacted a 100% tariff, while the European Union's tariffs can reach as high as 50%. Consequently, there has been a marked reduction in the volume of Chinese EV exports. Sales, which peaked in January 2024, took a sharp downturn in subsequent months, leading to fears that ongoing tariffs will devastate overall sales figures.