EU Tariffs on China EVs: Who Are the Winners and Losers?

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Bloomberg Jun 13 08:01 · 8993 Views

The European Union announced it will hike tariffs to as high as 48% on electric Chinese imported vehicles. China has threatened retaliation across agriculture, aviation and cars with large engines. Bloomberg's Danny Lee reports.

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Transcript

  • 00:00 Danny, just run us through who are the winners and losers from this announcement.
  • 00:05 There are a few winners in this
  • 00:07 China's best selling
  • 00:09 car brand BYD.
  • 00:11 They got the lowest amount of additional tariffs slapped on them yesterday.
  • 00:15 So it's stock has reacted
  • 00:17 much,
  • 00:19 much better basically than its rivals.
  • 00:20 It was up at one point
  • 00:21 8.8% in Hong Kong
  • 00:24 earlier on Thursday
  • 00:26 and we have seen
  • 00:27 others reacting badly.
  • 00:28 SAIC Motors, they had the biggest set of additional tariffs slapped on them and they were down sharply at one point, down 3%.
  • 00:36 So clearly there is
  • 00:37 a a divergent of those who are clearly the winners and losers.
  • 00:40 But it's not a surprise.
  • 00:41 But given
  • 00:42 we were expecting to see even bigger
  • 00:46 a number of tariffs put on some of these brands,
  • 00:49 clearly the
  • 00:50 the the fallout is
  • 00:52 one of a positivity if you're BYD
  • 00:54 not so grateful
  • 00:56 much of the others.
  • 00:57 But it's fascinating to see what has been playing out here as a result.
  • 01:02 Yeah, it is pretty interesting the fact that some of these EV makers are positive.
  • 01:05 But I guess the next question is how are China likely to retaliate?
  • 01:09 Could they also be coming out with terrorists on their own
  • 01:12 on some of those European car makers?
  • 01:16 Yeah, this is a kind of sensed area here for
  • 01:19 for the foreign automakers, particularly out of Germany where you've got, you
  • 01:22 know, the the big brands such as your BMWs and Mercedes,
  • 01:26 they really rely heavily on on China for profitability.
  • 01:29 And so
  • 01:30 we'll be watching closely for what China's retaliation is.
  • 01:33 But right now the reaction,
  • 01:35 China has been criticizing
  • 01:37 the typical protectionism that
  • 01:39 that Europe that Brussels has put on with these additional tariffs.
  • 01:43 China though, has warned that it may put on
  • 01:46 tariffs or may start investigations rather
  • 01:49 on the likes of the dairy industry and
  • 01:52 and on the aviation sector.
  • 01:53 So these are
  • 01:54 kind of things that it's very unhappy about.
  • 01:57 Clearly, it's lobbying efforts ahead of this announcement yesterday
  • 02:00 did not succeed.
  • 02:01 And so therefore,
  • 02:03 you know,
  • 02:04 be wondering
  • 02:05 just what it does next in terms of whether we see a ratcheting up of the trade tensions between two of the world's largest
  • 02:12 economies.