Europe's EV Tariffs Protect the Past, Not the Planet

Europe is sabotaging its own climate goals by prioritising the protection of its car industry over allowing affordable Chinese electric vehicles in. This turns the green transition into a trade dispute with China, whilst risking the green transformation both sides urgently need.

Europe doesn’t need a trade war, it needs a strategy. Instead of raising tariffs on Chinese electric vehicles, the EU should establish a Green Trade Truce based on transparency, cooperation and fair competition. Brussels could invite Chinese and European producers to adhere to strict and verifiable standards on battery carbon footprints and recycled material content. In exchange, tariffs could be reduced for companies that comply. This approach would protect Europe’s interests, maintain affordable EVs for consumers, and advance climate goals. 

The Commission’s new duties on Chinese EVs are trying to protect European industry from unfair subsidies and overcapacity. However, they may have the opposite effect by slowing electrification and raising costs for households. Chinese models are often 20–30 percent cheaper and are more advanced, not only because of state support. Over the past decade, China has built a tightly integrated EV ecosystem, due to their battery manufacturing, refining key materials like lithium and scaling production quickly. Furthermore, its carmakers benefit from strong domestic demand, lower labour costs, and direct access to the entire supply chain. Europe in contrast faces fragmented production, higher energy costs and a complex regulatory framework, which makes it hard to compete. Tough tariffs may temporarily occlude these weaknesses, but they do not address the underlying issues. 

The irony is that Europe’s challenge is not insufficient protection, but a dearth of innovation and proactivity. Approving a new gigafactory can take years and charging infrastructure remains underdeveloped in many areas. Additionally, high power prices for the industry in comparison to the U.S. or China make it difficult to compete on price. Tariffs will not fix any of these bottlenecks. A smarter policy would focus on accelerating domestic competitiveness. With faster approvals, cheaper green power and coordinated incentives for battery innovation. Europe can succeed by prioritizing innovation over protectionism. 

Of course, Europe shouldn’t just accept unfair trade. If the Commission can prove that certain Chinese carmakers benefit from heavy state subsidies, then a measured response with, for example, targeted tariffs or negotiated price commitments is a legitimate option. However, just using duties on every import is a naïve weapon, which invites retaliation, disrupts global supply chains, and undermines Europe’s image as a defender of fair and open trade. Moreover, it exposes a double standard: Europe wants to claim climate leadership and demands global cooperation on carbon reduction, yet at the same time uses tariffs on affordable electric cars from China, which reduces their availability and slows EV adoption. 

An approach which prioritises standards would turn Europe’s regulatory strength into a competitive advantage. Without protectionism Brussels can raise the bar for everyone with transparent rules for battery sourcing and recyclability. Countries that meet those rules can access the European market freely; those that don’t would face penalties based on measurable environmental criteria. This model rewards innovation and compliance rather than political leverage and supports the desired climate goals. 

The urgency is clear. Every tariff that slows EV adoption pushes Europe further from its 2030 emissions goals. Europe can now decide if it wants to spend the next decade on trade disputes or focus on building clean-tech capacity. The EU should choose cooperation over confrontation and standards over sanctions. Climate change won’t wait. Europe must invent the future and not defend the past.

Image: Wikimedia Commons/iMoD Official

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