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The European Commission’s proposed provisional tariffs on electric vehicles (EVs) from the Chinese mainland sparked headlines this week, but experts suggest the move might not deliver the shockwave some expect. Daniel Gros, director of the Centre for European Policy Studies, broke it down in an interview with CGTN’s Xu Yi at the Bund Summit.
Why Tariffs Might Not Shock the Market
Gros highlighted that Chinese EVs are already priced significantly higher in Europe than domestically, making existing profit margins for automakers ‘relatively small’. With tariffs adding only a modest increase to retail prices, he argues, ‘European consumers focused on sustainability may still choose these vehicles’.
Brand Power vs. Price Tags
Europe’s strong automotive brands—think Mercedes-Benz or Volkswagen—also create a ‘loyalty buffer’, Gros noted. Chinese EV makers currently hold less than 5% of the EU market, making it harder to undercut established players even with lower costs.
The Road Ahead for Europe’s EV Industry
Gros emphasized that Europe’s focus should be on ‘innovation, not protectionism’ to stay competitive. As the EV race heats up, tariffs alone won’t charge up Europe’s battery—pun intended.
Daniel Gros, director of the Centre for European Policy Studies, broke it down in an interview with CGTN’s Xu Yi at the Bund Summit.
