Can EU tariffs on Chinese vehicles trigger a trade war? – Danske Bank

Source Fxstreet
Jun 19, 2024 14:29

Last week, the result of the EU Commission’s anti-subsidy investigation on Chinese Electric Vehicles (EVs) was finally released. EU tariffs on Chinese vehicles will increase from 10% to 27- 48% depending on the car brand, Danske Bank Chief Analyst Allan Von Mehren notes.

Trade war is an unlikely scenario

“EU tariffs on Chinese vehicles will increase from 10% to 27- 48% depending on the car brand. The tariff lift will create a higher barrier for Chinese EVs but they are likely to still be able to compete.”

“China denounced the move as “a blatant act of protectionism” and this week hit back with an anti-dumping investigation into imports of EU pork, which is says is supported by subsidies with EU exporting its’ overcapacity to China. It thus returns EUs accusations that China is exporting its’ overcapacity to Europe.”

“While the EU-China trade tensions are clearly on the rise, it is still in quite narrow sectors and in our view not big enough to be a trade war. We also doubt it will evolve into a wider trade war as neither EU nor China have any interest in this given economic vulnerabilities in both areas. Also, the EU is divided over the issue with especially German car companies speaking up against the tariffs.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Prioritize filling the $27,000 gap and even try higher.
placeholder
Japanese Yen stands tall near one-month top against USD on hawkish BoJ talksThe Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
Author  FXStreet
The Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Biden dropping re-election bid a question of when, not if- TD CowenInvesting.com-- President Joe Biden is likely to drop his bid for reelection, TD analysts said in a note, amid growing concerns over his health and whether he will be able to effectively run against R
Author  Investing.com
Investing.com-- President Joe Biden is likely to drop his bid for reelection, TD analysts said in a note, amid growing concerns over his health and whether he will be able to effectively run against R
goTop
quote