EU and China start negotiations on abolishing EU tariffs on Chinese electric vehicles

I would imagine that if they abolish the tariffs, there will be a flood of Chinese EVs into the EU that would swamp German carmakers. There is a real rift in the EU in that many countries and consumers would love the have the cheaper cars, while Germany would suffer. But if you’re one of those countries that had its domestic industry already crushed by no tariff imports so Germans could be buy cheaper goods, you would only be asking for fair treatment.

All that said, this could just be part of some kind of broader negotiation either with China or a message to the US. At the end of the day, you have to assume that whoever makes the cheaper, better cars is going to win in the global marketplace.

This article was written by Adam Button at www.forexlive.com.