Long Read: How the New Tariffs on Chinese EVs Will Slow Green Transition

The U.S. and EU measures will hurt local consumers and delay the global shift to a low-carbon lifestyle

The European Union on June 12 announced provisional tariffs on Chinese battery electric vehicles (EVs) based on its estimate of Chinese subsidies. They come after months of investigations by the EU, and are meant to be imposed on top of the 10% tariffs already in place. They are “provisional” because they might be revised downward if the Chinese producers can show evidence that the actual subsidies are lower. They may not be implemented if the EU can reach an agreement with the Chinese authorities to somehow reduce the quantity of Chinese EV exports to Europe.

The magnitude of the tariffs represents EU experts’ upper estimate of the total subsidy per vehicle that the Chinese producers receive from all levels of governments throughout the supply chains. The EU investigators first sent a request for