EU's tariff policy on Chinese EVs is misstep: Bloomberg

WASHINGTON, Oct. 12 (Xinhua) -- The EU's decision to impose tariffs of up to 45 percent on Chinese electric vehicles (EVs) is "a misstep that one must hope will give way to mutually beneficial negotiation, not launch a trade war that leaves both sides worse off," said a Bloomberg opinion piece on Friday.

The EU's EV policy could backfire, undermining its own decarbonization targets, reducing competitive pressure on domestic firms, and stifling innovation and productivity, it warned.

The tariffs could fuel, it said, calls for more trade barriers and state aid, pushing toward "an industrial policy that is already failing."

Such tools are being overused, undermining the EU's commitment to free trade, said the article, noting that other investigations, including into Chinese wind turbine suppliers and public procurement, are underway.

Though supporters claim the tariffs will push Chinese carmakers to build capacity in Europe, Bloomberg pointed out that it takes time for China to build distribution and service networks in Europe.

Despite rising imports of China-made EVs since 2020, Chinese brands only account for about 8 percent of new sales of battery EVs.

Meanwhile, European automakers still need access to China's booming market.

High costs, sluggish innovation, regulatory challenges, and fragmented capital markets weigh heavily on European automakers, it said.