China, Europe in EV tariff stare-down as Beijing drops retaliation hints

With two weeks before levies kick in, observers weigh possible deal or 'limited' payback

Visitors check out BMW's exhibit at the Beijing auto show in April. China has hinted at raising tariffs on European cars with high-displacement gas engines, with state media warning "BMW and Mercedes-Benz will bear the brunt." © Reuters

CISSY ZHOU, Nikkei staff writer

June 20, 2024 11:01 JST

HONG KONG -- With two weeks left before Europe's new tariffs on Chinese electric vehicles take effect, speculation is swirling over exactly how -- and how strongly -- Beijing intends to respond to the bloc's move.

China has said it would "resolutely" retaliate after the European Commission announced last week that it would raise the total tariff rate on Chinese EVs to up to 48% to counter "unfair" use of state support.