BYD, which leads China’s electric vehicle sector, is constructing a plant in Hungary while its Chinese rivals expand through joint ventures in Europe.
The Canadian government will impose a new tariff on electric vehicles made in China, further escalating trade tensions between Western countries and China.
The new tariffs announced by Prime Minister Justin Trudeau will match levies imposed by President Biden and could further strain relations between Canada and China.
The European Commission will charge the U.S. automaker an additional duty of 9 percent, much lower than tariffs levied on its Chinese peers for electric vehicles imported to Europe.
The European Union took the next step toward collecting heavy tariffs on electric vehicles, ahead of a final decision in October.
As the European Union moves to impose tariffs on Chinese cars, Germany, with an auto industry deeply enmeshed with China, is stuck in the middle.
Acting quickly after the European Union imposed extra tariffs of up to 38 percent on China’s electric cars, Beijing opened a trade case on Europe’s pork.
The tariffs have been expected for months, but many European automakers warned they will drive up prices for consumers and set off a trade war with China.
Leaders in Brussels are trying to curb China’s dominance in the industry, but European automakers fear the taxes will drive up prices and lead to a trade war.
The United States and Europe are trying to catch up to a rival skilled in using all the levers of government and banking to dominate global manufacturing.