Study: Car imports from China fall by 42 percent due to new EU tariffs
Researchers believe that falling imports from China will be offset by more sales from European producers and imports from other countries. In China, prices for electric cars may decrease, while they may increase by 0.3 to 0.9 percent in Europe. These effects could be more pronounced in the short term, according to IfW. The IfW simulated the impact of tariffs in collaboration with the Austrian Institute for Economic Research (Wifo) and the Supply Chain Intelligence Institute Austria (ASCII).
The tariffs on electric cars from China will initially take effect on Thursday. The background is allegations that Chinese manufacturers are benefiting from comprehensive subsidies at the expense of European manufacturers.
"Principally, the EU is reacting correctly with countervailing duties to China's distorting trade practices," explained Wifo Director Gabriel Felbermayr. At the same time, the EU should do everything possible to achieve negotiated results and "escalation spirals" should be avoided, he advised.
Shortly after the EU announced its investigation, the Chinese government initiated an anti-dumping procedure against French brandy. A probe into European pork is currently underway. An introduction of tariffs in this sector would be "unpleasant" - especially for pig farmers in Denmark, Spain, and Germany - but would have only minor effects on the EU's prosperity, according to the study.
- The study predicts that decreasing 'Car imports' from China might be countered by increased sales from European manufacturers and imports from other countries.
- The IfW, in collaboration with Wifo and ASCII, simulated the impact of 'EU customs duties' on imports of electric vehicles from China.
- The research suggests that 'Prices for electric cars' in Europe may potentially increase by 0.3 to 0.9 percent due to the imposed 'EU customs duties'.
- Experts at IfW anticipate that these effects might be more prominent in the 'short term'.
- The 'Tariffs on electric cars' from China, set to commence on Thursday, are a response to allegations of Chinese manufacturers receiving 'comprehensive subsidies' at the expense of European manufacturers.
- Wifo Director Gabriel Felbermayr commented that while the EU's implementation of 'countervailing duties' against China's 'distorting trade practices' is generally correct, negotiations should be pursued to prevent 'escalation spirals'.
- The study contends that although 'Introduction of tariffs' in the sector would be 'unpleasant' for pig farmers in Denmark, Spain, and Germany, it would only have a minor impact on the EU's overall prosperity.
