How Europe can use tariffs as part of an industrial strategy

(Transport and Environment, 27 Mar 2024) T&E’s paper looks at electric vehicle imports into Europe and what an effective response on both EVs and batteries might be.

The sales of battery electric cars in Europe have been growing quickly, with 2 mln cars sold across Europe in 2023 alone. But given China’s edge in battery technology and some feet dragging by European legacy carmakers, more and more of those electric cars are imported from China. The European Commission launched an anti-subsidy investigation into Chinese EVs. With the preliminary ruling expected soon, T&E’s paper is looking at the EV imports into Europe and what an effective response on both EVs and batteries might be. 

This paper is part of our work on industrial and trade policy. Europe’s goal should be to decarbonise as fast as possible but to do so in a way that safeguards essential economic, social and security interests. Decarbonisation in the EU should not mean deindustrialisation and trade policy has a key role to play.

19.5% of all electric cars sold across the EU last year, or 300,000 units, were built in China. In France and Spain close to every third BEV sold in 2023 was made in China.

External link

Transport and Environment, 27 Mar 2024: How Europe can use tariffs as part of an industrial strategy