The recent imposition of a 100% tariff on Chinese electric vehicles by the United States, which has raised concerns of a new trade war between the West and China. This move comes after the 2020 US-China trade deal that ended the previous two-year period of escalating tariffs and restrictions. The EU is considering following suit with new tariffs against China, and China has vowed to retaliate. While leaders like the EU have stated that a second trade war is not the intention, the EU is likely to introduce new tariffs to compensate for China’s subsidies to strategic sectors like batteries, renewables, and electric vehicles. Brazil, Thailand, and other nations have already announced new tariffs on Chinese goods. However, some argue that this is just political maneuvering to appear tough on China, and the real issue may be how China chooses to solve its economic crisis at home.
