The European Union is preparing to increase tariffs on Chinese electric vehicles soon, amid the escalating trade war between China and the West. This follows the recent announcement by the United States to raise tariffs on Chinese electric cars to 100%, and China's preparations for retaliatory measures against European and American companies.

Chinese automakers could lose up to $4 billion in annual sales due to the new European tariffs.

These new tariffs could prevent 125,000 Chinese cars from entering European markets. According to a study by the Kiel Institute for the World Economy, the European Union is expected to raise tariffs on Chinese electric vehicles to 20%. This move could prevent 125,000 Chinese electric cars from entering European markets annually, with a value estimated at around $4 billion. It is noteworthy that China exported half a million cars to Europe in 2023.

On the other hand, the European institute expects that sales of electric cars made in Europe will increase by approximately $3.3 billion annually to fill the gap left by Chinese cars, which is the primary goal of these tariffs.

The European Union also accuses Chinese car manufacturers of unfairly benefiting from substantial financial incentives provided by the Chinese government for electric vehicles, making them much cheaper than their European competitors.

The European Union is expected to make its final decision regarding tariffs on Chinese cars later this month. Meanwhile, Chinese media reported that the Chinese government is preparing to impose tariffs of up to 25% on European and American cars with engines larger than 2.5 liters as a retaliatory measure.