EU to go ahead with tariffs on Chinese EVs after failure in talks

The European Union has started imposing higher duties on imports of electric vehicles from China after talks between Brussels and Beijing failed to find a solution to their trade dispute.

Electric vehicles have become a major flashpoint in a broader trade standoff over Chinese government subsidies and Beijing's exports of green technology to the EU.

The EU duties range from 7.8% for Tesla to over 35% for China's state-owned SAIC, on top of the EU's standard 10% car import duty.

The move has been controversial, with opposition from Germany and Hungary who fear it will provoke China and set off a trade war. France and the French auto industry have welcomed the decision.

Talks continue between the EU and China, and the duties can be lifted if they reach a satisfactory agreement, such as minimum prices to offset subsidies.

China has objected to the measures as protectionist and unfair, and has filed a complaint with the World Trade Organization. It has also launched retaliatory tariffs on EU products.

The trade tensions extend beyond electric cars, with the EU also investigating Chinese subsidies for solar panels and wind turbines.

The impact of the tariffs on consumer prices remains to be seen, as some producers may be able to absorb them.

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