Electric cars and the potential trade war: How do tariff barriers threaten European industry?

Electric cars and the potential trade war: How do tariff barriers threaten European industry?

Economic relations between the European Union and China have undergone a radical transformation recently, shifting from a "strategic partnership" to one of "cautious competition." The term "De-Risking" has become the cornerstone of European economic policy toward Beijing. This strategy, adopted by the EU under the leadership of the European Commission and supported by leaders in France and Germany, aims to reduce over-reliance on China in vital supply chains without succumbing to the "decoupling" that economists consider disastrous for the global economy. A deeper analysis of this strategy reveals multiple and interconnected motivations. First, there is the geopolitical motive: the COVID-19 pandemic and the war in Ukraine demonstrated that dependence on a potential adversary for essential goods is a strategic vulnerability. Europe recognizes that China is not merely a trading partner, but also an ideological and political rival. Therefore, maint…