The impact of EU tariffs on Chinese electric vehicles varies significantly across European countries, according to a discussion paper published on Tuesday by economist Georg Stadtmann from the Europa-Universität Viadrina in Frankfurt (Oder). The author notes that a single trade policy boundary does not carry the same economic weight for all EU member states; rather, its effect depends crucially on the nation’s economic structure. In France, the tariffs are primarily viewed as protection for the domestic automotive industry, while Germany holds a more critical stance due to its export-oriented industries and reliance on the Chinese market. Denmark, meanwhile, faces higher prices for Chinese EVs in a market characterized by high consumer demand but lacks a native automotive production sector.
Furthermore, Stadtmann examines the consequences for international value creation. Chinese manufacturers have responded to these trade barriers by establishing production facilities within the EU; for instance, BYD is planning a plant in Hungary, and Chery is setting one up in Spain. Instead of crossing the customs boundary, the value chain is migrating across it. The author concludes that the tariffs did not necessarily reduce global value creation, but rather reorganized it. Additionally, digital boundaries are growing in importance: connected vehicles continually transmit data across national borders, meaning that future market access will be determined not only by tariffs and production locations but increasingly by regulations governing data and software.
