The disunited EU is a laughing stock once again. Its chaotic decision-making continues to benefit China
Uncoordinated and chaotic. This is exactly how the decisions of the European Union appear in many issues. One of the latest is the imposition of tariffs on the import of electric vehicles from China. However, this plan is starting to crumble, with opposition not only from car manufacturers but also from politicians. The main winner of the European chaos is once again the Chinese comrade.
It has been just over two months since the European Union announced the introduction of new tariffs in response to the import of cheap Chinese electric cars. Despite warnings from European manufacturers themselves, these tariffs are intended to improve the position of European carmakers. However, it soon turned out that the situation might bring the opposite effect in the form of a reaction from China, potentially closing its market to European cars. The disunited EU is currently alleviating the temporary tariffs for some "cooperating" carmakers. To top it off, it seems that the tariffs might not even be implemented after all. The first member states of the twenty-seven are already opposing their permanent introduction.
The European Union finds itself amidst criticism not only from the public but also from its own members. As early as the summer of 2024, the EU announced the implementation of import tariffs on cheap Chinese electric cars to protect European carmakers from overwhelming competition. At first glance, this might seem like a well-thought-out move to support the local industry. However, this decision quickly proved controversial and the EU is now facing criticism for its disjointed and chaotic approach to the tariff issue. At stake is not only the future of European carmakers but also relations with China and their consequences for the European economy.
The European tariff on Chinese electric cars was supposed to provide European manufacturers with space in an increasingly competitive environment. Cheap Chinese cars, often state-subsidized, started flooding the European market, threatening local producers who face higher costs. From the outset, the introduction of tariffs raised a wave of doubts. European manufacturers themselves warned of the possibility that China might respond by closing its market to European vehicles. These concerns soon began to materialize. China expressed its disapproval of the European step and warned of retaliatory measures, which could have far-reaching consequences for European carmakers also trying to gain a foothold in the Chinese market.
The disunity among EU member states regarding Chinese tariffs is becoming increasingly apparent. While some countries call for protecting domestic manufacturers and sticking to the original plan, others are beginning to call for a reassessment of this move. One such country is Spain. Prime Minister Pedro Sánchez recently urged the European Commission and other member states to reconsider the permanent implementation of these tariffs. According to him, it is necessary to consider the broader economic consequences that such a decision might bring.
Sánchez's stance reflects the concerns of many European countries that fear the economic impacts of potential Chinese retaliatory measures. Spain has significant economic ties with China (in the form of significant meat exports), and the potential closure of the Chinese market to European cars could negatively impact Spanish carmakers. Import tariffs are also seen as a measure that might help in the short term but cause more harm than good in the long term. Sánchez argues that the permanent implementation of tariffs could disrupt EU-China trade relations and weaken the European economy at a time when it should be seeking new markets and partnerships.
Furthermore, access to the Chinese market is crucial for many European manufacturers. European cars, especially luxury brands, have gained considerable popularity in China, and the export of these vehicles constitutes a significant part of their profits. If China were to limit the import of European cars, it could negatively impact the entire European automotive sector.
The European Union once again appears to be divided on key issues, which weakens its ability to effectively face global challenges. Of course, China notices this disunity and can exploit it to its advantage. Cheap Chinese electric cars continue to flow into the European market, and the EU lacks a unified strategy to address this situation.
Furthermore, it is becoming apparent that the tariffs may not be permanent as initially intended. Some EU states have already begun to oppose their permanent implementation, further highlighting disunity within the bloc. As a result, the situation might end with no tariffs being implemented at all, or only partially, putting China in an advantageous position.
It is more than evident that the current EU policy on Chinese electric cars not only fails to aid European manufacturers but also complicates relations with China. The EU finds itself in a difficult situation, unable to find a common strategy that effectively protects its economic interests while not jeopardizing key trade relationships. This state of affairs once again underscores the disunity within the EU, making it a target of ridicule not only on the global stage but also within the community itself. Meanwhile, China continues to strengthen its position and benefits from Europe's indecision.
