EU backers of China EV tariffs face the biggest risk of retaliation

Beijing has warned the EU will lose investment from Chinese EV companies and the opportunity to transform its own car industry if the tariffs are adopted.

The European Union’s decision to impose tariffs on Chinese electric vehicles has moved the focus to how and when Beijing will retaliate for the escalation in its biggest trade dispute with the bloc in years.

While talks continue, crucial clues may lie in the votes cast by individual EU member states on the EV measures last week. Beijing has previously threatened tariffs on EU brandy imports and launched investigations into pork and dairy products in response to the tariffs — offering a range of options that affect different parts of Europe.