IDEAS home Printed from https://ideas.repec.org/p/bdt/asciis/004.html

Time to be Open, Sustainable, and Assertive: Tariffs on Chinese BEVs and Retaliatory Measures

Author

Listed:
  • Gabriel Felbermayr

    (Austrian Institute of Economic Research (WIFO)
    Kiel Institute for the World Economy)

  • Klaus Friesenbichler

    (Austrian Institute of Economic Research (WIFO)
    Supply Chain Intelligence Institute Austria (ASCII))

  • Julian Hinz

    (Kiel Institute for the World Economy)

  • Hendrik Mahlkow

    (Austrian Institute of Economic Research (WIFO)
    Kiel Institute for the World Economy)

Abstract

On 12 June, the European Commission announced provisional countervailing tariffs of 21% on battery electric vehicles (BEVs) imported from China. This paper uses a large-scale trade model (KITE) to assess the impact of the tariffs, showing that while short-term effects may be larger, long-term effects are likely to be moderate. BEV imports from China are projected to fall by 42%, with limited impacts on EU car exports. This policy brief also analyzes potential retaliatory measures from China, including tariffs on EU pork exports, and highlights the need for careful negotiation to avoid escalation.

Suggested Citation

  • Gabriel Felbermayr & Klaus Friesenbichler & Julian Hinz & Hendrik Mahlkow, 2024. "Time to be Open, Sustainable, and Assertive: Tariffs on Chinese BEVs and Retaliatory Measures," ASCII Studies 004, Supply Chain Intelligence Institute Austria.
    • Handle: RePEc:bdt:asciis:004
    as

    Download full text from publisher

    File URL: https://www.ifw-kiel.de/fileadmin/Dateiverwaltung/IfW-Publications/fis-import/932e204b-bbe8-4b23-80b1-55c1d6015b1f-KPB_177.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kyle Bagwell & Robert W. Staiger, 2004. "The Economics of the World Trading System," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262524341, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sébastien Jean & David Laborde & Will Martin, 2008. "Choosing Sensitive Agricultural Products in Trade Negotiations," Working Papers 2008-18, CEPII research center.
    2. Xuepeng Liu & Emanuel Ornelas, 2014. "Free Trade Agreements and the Consolidation of Democracy," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(2), pages 29-70, April.
    3. Felbermayr, Gabriel, 2022. "European trade policy at the service of geopolitics? Requirements for new instruments from the perspective of family businesses," Studien, Stiftung Familienunternehmen / Foundation for Family Businesses, number 273454.
    4. Gaubert, Cecile & Itskhoki, Oleg & Vogler, Maximilian, 2021. "Government policies in a granular global economy," Journal of Monetary Economics, Elsevier, vol. 121(C), pages 95-112.
    5. Christopher Findlay & Hein Roelfsema & Niall Van De Wouw, 2021. "Feeling the Pulse of Global Value Chains: Air Cargo and COVID-19," Working Papers DP-2021-23, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. David A. Steinberg & Yeling Tan, 2023. "Public responses to foreign protectionism: Evidence from the US-China trade war," The Review of International Organizations, Springer, vol. 18(1), pages 145-167, January.
    7. Aklin, Michaël & Buntaine, Mark T & Mildenberger, Matto, 2023. "Conditionality and the Politics of Climate Change," Institute on Global Conflict and Cooperation, Working Paper Series qt3mb417zg, Institute on Global Conflict and Cooperation, University of California.
    8. Peter H. Egger & Katharina Erhardt, 2024. "Heterogeneous effects of tariff and nontariff trade‐policy barriers in quantitative general equilibrium," Quantitative Economics, Econometric Society, vol. 15(2), pages 453-487, May.
    9. Kyle Bagwell & Petros C. Mavroidis & Robert W. Staiger, 2003. "The Case for Auctioning Countermeasures in the WTO," NBER Working Papers 9920, National Bureau of Economic Research, Inc.
    10. Gabriel Felbermayr & Wilhelm Kohler, 2014. "WTO Membership and the Extensive Margin of World Trade: New Evidence," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 5, pages 149-192, World Scientific Publishing Co. Pte. Ltd..
    11. Pokrivcak, Jan, 2007. "Economics and Political Economy of Regional Trade Agreements," Working Papers 7286, TRADEAG - Agricultural Trade Agreements.
    12. Kamin, Katrin & Bernoth, Kerstin & Felbermayr, Gabriel & Fratzscher, Marcel & Hoffmann, Mia & Poitiers, Niclas & Rieth, Malte & Weil, Pauline & Wolff, Guntram B. & Zachmann, Georg & Dombrowski, Jacque, 2021. "Instruments of a strategic foreign economic policy: Study for the German Federal Foreign Office," Open Access Publications from Kiel Institute for the World Economy 314956, Kiel Institute for the World Economy (IfW Kiel).
    13. Zissimos, Ben, 2007. "The GATT and gradualism," Journal of International Economics, Elsevier, vol. 71(2), pages 410-433, April.
    14. Bown, Chad, 2007. "Developing Countries and Enforcement of Trade Agreements: Why Dispute Settlement Is Not Enough," CEPR Discussion Papers 6459, C.E.P.R. Discussion Papers.
    15. Simon Schropp, 2007. "Revisiting the "Compliance-vs.-Rebalancing" Debate in WTO Scholarship a Unified Research Agenda," IHEID Working Papers 29-2007, Economics Section, The Graduate Institute of International Studies, revised Dec 2007.
    16. Saggi, Kamal, 2003. "Trading Market Access for Competition Policy Enforcement," CEPR Discussion Papers 4110, C.E.P.R. Discussion Papers.
    17. Gabriel Felbermayr & Wilhelm Kohler, 2010. "Does WTO Membership Make a Difference at the Extensive Margin of World Trade?," Palgrave Macmillan Books, in: Zdenek Drabek (ed.), Is the World Trade Organization Attractive Enough for Emerging Economies?, chapter 8, pages 217-246, Palgrave Macmillan.
    18. Ramphul Ohlan & Anshu Ohlan & Sudesh Chhikara & Tejaswini Singh, 2025. "Bibliometric Analysis and Review of World Trade Organization Research: Suggesting Future Avenues using WOS Database," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 3741-3771, March.
    19. Rod Tyers, 2004. "Implicit Policy Preferences and Trade Reform by Tariff Aggregates," ANU Working Papers in Economics and Econometrics 2004-445, Australian National University, College of Business and Economics, School of Economics.
    20. Wilfred J. Ethier, 2002. "Trade Policies Based on Political Externalities: An Exploration, Third Version," PIER Working Paper Archive 04-006, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 04 Feb 2004.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdt:asciis:004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hernan Picatto (email available below). General contact details of provider: https://edirc.repec.org/data/asciiat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.