The United States announced an increase in tariffs on electric vehicles in China, Swedish Prime Minister: This is a bad idea

Lead

The U.S. suddenly announced tariffs on electric vehicles and components produced in China, raising the 25% tariff to 100%.

The U.S. move is to use the trade war to affect the development of China's electric vehicle industry and make it more difficult for Chinese electric vehicles to be sold in the United States.

In response to the U.S. move, Swedish Prime Minister Stephen Loven believes that the U.S. move is a bad idea, and the U.S. should work with other countries to protect the earth's environment and cooperate in the development of the electric vehicle industry.

Earlier, German Chancellor Olaf Scholz also expressed opposition to the unilateral measures taken by the United States, arguing that the United States cannot resolve the trade dispute by imposing punitive tariffs on foreign products.

First, the United States imposed tariffs on China's electric vehicles.

On May 14, 2024, the United States suddenly announced that it would increase the already 25% tariff on Chinese electric vehicles to 100% from July 1, increasing the already severe tariff penalties and increasing restrictions on Chinese electric vehicles.

The move is reminiscent of the sinister trade relations between Germany and China during the Trump-era era.

Is there any hidden reason behind the U.S. massive increase in tariffs on Chinese electric vehicles? Is the United States really wronging China?

In fact, the U.S. decision is related to the reports of some domestic manufacturers and the automotive industry, as well as the growth of the electric vehicle market in China.

Since the U.S. imposed tariffs on Chinese electric vehicles during the Obama administration, the U.S. domestic electric vehicle market has only 25% tariffs on electric vehicle products and electric vehicle components produced in China, and the tariff ceiling is also $25,000, and since Trump canceled China's most-favored-nation status, these tariffs have been full of $150 billion of Chinese products.

According to the U.S. investigation of electric vehicles produced in China, it was found that the Chinese government subsidized domestic electric vehicle companies by up to 160 billion, so the U.S. domestic electric vehicle industry was hit by the Chinese market, and Tesla was the biggest impact.

Tesla is now the most well-known electric vehicle manufacturer in the United States, and it is also the most competitive car in the American electric vehicle market, and the battery technology used by Tesla is leading in the world.

Tesla's shortcomings are also well known, Tesla's battery life and safety produced in China are not stable enough, and there have even been fire accidents caused by batteries.

This has caused a big blow to China's local electric vehicle manufacturers and raw material manufacturers, and there is even a proposal that Tesla will no longer sell charging piles to Tesla if it wants to "make a big fuss" in China.

The Chinese government's emphasis on the electric vehicle industry is not only to promote the development of the automobile market, but also to protect the global environment and reduce environmental pollution, which is why China will subsidize electric vehicle companies.

The U.S. "dumping" investigation into China's electric vehicles is not only a slander against Chinese electric vehicle companies, but also a criticism of China's energy conservation and environmental protection policies, which means that the United States is not only hostile to Chinese electric vehicle companies, but also attacks China's energy conservation and environmental protection policies.

In order to further promote the development of the automobile market, the Chinese government has continuously improved the policies and regulations of the mainland, creating a more open development environment for China's local electric vehicle manufacturers, and now China's electric vehicle industry has been located at the commanding heights of the world.

After the U.S. raised the tariff on electric vehicles produced in China from 25% to 100%, the U.S. originally thought that it would have a greater impact on the sales of electric vehicles produced in China, but this was not the case, and only 180 Tesla electric vehicles produced in China were sold, so the U.S. tariffs and penalties did not have a great impact on the electric vehicle market in the mainland.

The competition in the electric vehicle industry is not only a domestic competition, but also a global competition, and all countries want to gain a foothold in the advanced electric vehicle industry and develop the electric vehicle industry together with other countries.

2. The Swedish Prime Minister is opposed to the use of tariff penalties to settle disputes.

The U.S. abruptly announced an increase in tariffs on Chinese electric vehicles from 25% to 100%, which Swedish Prime Minister Stephen Lovevin opposed.

The United States has taken the opportunity of the trade war to continue to knock on China's trade around the world, which not only has an impact on China's economic development, but also has an impact on America's trading partners.

The Swedish Prime Minister said in an interview: "This is obviously a bad idea, China has invested a lot of energy in the field of electric vehicles, and Chinese electric vehicle manufacturers have a large share of the global electric vehicle market, and China's electric vehicles have a big role in promoting the global car market."

The U.S. should not sanction Chinese EV companies because of fear of China's EV industry, and the U.S. should work with other countries to develop the EV market to protect the planet. ”

The Prime Minister of Sweden is not only the top leader of Sweden, but also an active advocate of environmental issues, during the new crown epidemic, Sweden as one of the countries with a more serious new crown epidemic, but the Swedish people are actively supporting the early disappearance of the epidemic, so Sweden did not close the city like other countries during the new crown epidemic, and the people also strictly abide by the epidemic prevention regulations and do not go out at will.

It is with the joint efforts of the Swedish people that the epidemic in Sweden has been effectively controlled, so Sweden also hopes that countries around the world can work together to protect the earth's environment and reduce pollution to the earth.

Sweden is also making great progress in the field of new energy vehicles, Sweden's most famous car brand is Volvo, Volvo also enjoys a good reputation in the Chinese market, in addition to the Swedish production of Volvo cars in the Chinese market has a good reputation, Volvo also produces Chinese domestic enterprises BYD's electric vehicle products.

It is precisely because Sweden has a deep relationship with China's automobile manufacturing industry that the Swedish prime minister does not want the United States to punish China's electric vehicle products.

Swedish Prime Minister Stephen Lofven also said: "Sweden does not agree with 'anti-dumping' investigations against other countries' industries, nor does it agree with punitive tariffs to resolve trade disputes."

Third, the German Chancellor and the Swedish Prime Minister have joined forces to oppose the US approach.

Olaf Scholz, as German Chancellor, has also previously expressed his opposition to the United States' "anti-dumping" investigation of electric vehicles produced in China, while also opposing the imposition of 100% punitive tariffs on electric vehicles produced in China.

"The U.S. 'anti-dumping' investigation into China's electric vehicles is purely out of nowhere, and in fact the trade relationship between China and the West is very important, and there are many European manufacturers who have already achieved great success in the Chinese market in addition to American manufacturers," Scholz said.

In response to a question about US tariffs on China, Olaf Scholz said superficially: "We should conduct an 'anti-dumping' investigation against unfair trade, instead of blindly imposing tariffs on Chinese products."

In addition, some major German automakers have also expressed opposition to the EU's "countervailing" investigation of electric vehicles produced in China, and the mainstream German automakers believe that the EU does not consider Chinese electric vehicles to be an industry affected by subsidies.

"We don't want the EU to impose punitive tariffs, which will not only have a negative impact on the development of China's electric vehicle industry, but also have a negative impact on the trade relationship between China and the EU, so we hope that the EU will not impose punitive tariffs on electric vehicles produced in China," the German mainstream automaker said.

At present, the EU is still conducting a "countervailing" investigation into electric vehicles produced in China, after all, the EU is facing external trade pressure, and the investigation is carried out in order to prevent multinational companies from affecting the EU's level playing field through subsidies.

In fact, the United States has carried out an "anti-dumping" investigation on electric vehicles produced in China, which is also to protect the domestic industrial development environment, but the United States has not worked its own problems of destroying the earth's environment for hundreds of years, and continues to do everything possible to find opportunities to suppress China's electric vehicle industry.

The U.S. trade relationship with China is particularly complex, with China not only being the largest trading partner of the United States since 2008, but also the third-largest trade surplus of the United States, the largest trading partner of China, and the largest trade deficit of China.

In this case, the implementation of "anti-dumping" investigations by the United States against China and the imposition of punitive tariffs on electric vehicle products produced in China are undoubtedly a worse situation for the trade relations between the United States and China.

For such international trade disputes, we should not simply take unilateral measures such as punitive tariffs, but should strengthen dialogue and cooperation, resolve trade disputes through dialogue and consultation, and maintain the stable development of trade relations between China and the West.

Fourth, the importance of trade relations between China and the West.

The stable development of Sino-Western trade relations is of great significance to the world economy, and there is also a lot of competition between multinational companies between China and the West, and there are also cooperative relations, all in order to better meet the needs of customers.

Globally, almost every country has a certain scale of automobile manufacturing enterprises, many of which are well-known car brands.

Multinational automobile manufacturers compete and cooperate in the global market at the same time, which can effectively improve the quality and manufacturing level of automobiles, and better provide consumers with high-quality automotive products.

At the same time, the cooperation between enterprises on a global scale also provides strong support for the development of technological innovation, intelligence, intelligent networking and other directions in the automotive industry.

In the new energy vehicle industry, there is also a lot of cooperation between domestic local automobile manufacturers and foreign advanced technology and manufacturing enterprises, injecting fresh blood into the development of the new energy automobile industry.

At the same time, in the context of rising international trade disputes, the development of the new energy vehicle industry has also been greatly affected, but the international new energy vehicle manufacturing enterprises represented by China continue to make breakthroughs and innovations to promote the better development of the new energy vehicle industry.

China as the world's first new energy vehicles to be born in the country, the development of the new energy vehicle industry has always been in the forefront of the world, China not only has a lot of technological innovation in the field of new energy vehicles, but also formed a complete industrial chain, domestic new energy vehicle manufacturers not only have a good development environment in the country, but also have a broad space for development in the world.

V. Conclusion

The punitive tariffs imposed by the United States on electric vehicles produced in China have undoubtedly had a huge impact on Sino-Western trade relations, and also have a negative impact on trade relations between China and the West.

The EU's "countervailing" investigation into China's electric vehicles makes it even more unreasonable for the United States to impose 100% punitive tariffs on Chinese electric vehicles.

There is also a need for greater coordination within the EU to form a unified position to respond more effectively to external trade pressures, while China's automotive industry needs to continue to grow in an international trade environment.