Notes
The new tariffs form EV cars coming from China (from 26% up to 48% vs the current 10%) will at best give some time to the European carmakers to get up to speed, but will most probably result in several negative spillovers of such decision like:
1- Chinese retaliation to other industries (China will definitely not stay idle with significant downside effects on the overall economy).
2- European companies that are producing cars in China to export will be also affected.
3- The price premium that EV Chinese cars are being priced in Europe vs. China implies that there is big opportunity to those company to, for now, absorb the tariff impact (if not fully at least a significant part it) undermining the decision, leaving EU with just the downside of retaliation measures.
Chinese cars will not go away, and the Chinese advantage has to be addressed by better competitive product/prices from their European peers and not by a tariff driven edge.
