The European Union voted on Friday to impose tariffs as high as 45% on electric vehicles from China, threatening a broader trade conflict with Beijing which has already vowed to protect its companies.
If the US or EU want to keep up, they can subsidize EV manufacturing to the same degree
You can’t allow dumping-inducing subsidies without also allowing defensive tariffs, otherwise the richer and more authoritarian countries, which have greater capacity for subsidies and greater ability to concentrate them in specific sectors, will easily kill foreign competition and establish monopolies.
You can’t allow dumping-inducing subsidies without also allowing defensive tariffs, otherwise the richer and more authoritarian countries, which have greater capacity for subsidies and greater ability to concentrate them in specific sectors, will easily kill foreign competition and establish monopolies.