Recently, the United States and Europe have engaged in a "trade cold war" with China's new energy vehicle industry, not through gunfire but through mutual taxation. The U.S., in a fit of emotion, slapped a 100% punitive tariff on Chinese new energy vehicles, while the EU, slightly more restrained, imposed a 37.6% import duty. This has not only affected the overseas dreams of Chinese car manufacturers but also disrupted the global automotive trade market.

The U.S., acting like a cat with its tail stepped on, has doubled down on tariffs for Chinese new energy vehicles, primarily because it's not pleased with the rapid pace at which Chinese car companies are racing in the international market. The EU, not to be outdone, has come out swinging with a 37.6% rate, claiming to protect local car manufacturers from external pressures. This move has caused quite a stir, like an ant nest that's been blown up.

The U.S.'s tariff club is not a new weapon in its arsenal. Remember the Trump era? Back then, the U.S. imposed taxes on a variety of Chinese products, causing global supply chains to be on edge. Now, history repeats itself, with new energy vehicles becoming the new target. The U.S.'s thinking is quite simple: "If you don't let me be comfortable, I won't let you have it easy."

The EU's story is even more convoluted. Initially, they considered a 50% tax rate, but after some calculations, they thought it might be too harsh, especially since European products are also sold in large quantities in China, and a backlash would be disastrous. Thus, the current 37.6% was established. But how did this figure come about? It is said that German automotive giants strongly opposed high tax rates behind the scenes because they are thriving in the Chinese market. In the end, Germany had to compromise because, at the EU's decision-making table, their influence seemed less significant than they had imagined.

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To be honest, in this tariff turmoil, Germany plays a special role. On one hand, they need to protect their own automotive industry, and on the other hand, they cannot afford to offend China, a major customer. When the EU set the 37.6% rate, Germany was actually reluctant. They even wanted to push the tax rate below 15%. Unfortunately, other EU countries did not agree, and Germany had to swallow this bitter pill with tears.

In this tariff war, China is naturally not a pushover. Faced with the dual pressures from the U.S. and Europe, China has come prepared. Not only has it made significant efforts in the field of new energy vehicles, but it has also prepared various countermeasures. For example, it has launched anti-dumping and countervailing investigations against EU pork and large-displacement traditional vehicles. This "tit-for-tat" approach has made Europe feel the pressure.

In the end, the EU's "fine-tuning" of the tax rate is more like a strategic minor adjustment. They are also aware that this adjustment is not a concession to China at all. But the EU is also exploring how to find a balance point that minimizes self-harm between the pressure from the U.S. and the countermeasures from China.From a broader perspective, this trade war is not just about tariffs; it is a game over the future direction of the global automotive market. China's new energy vehicle market has already taken shape, and its technological and cost advantages are beginning to emerge. Even under the suppression of high tariffs, Chinese car manufacturers still have competitiveness.

This trade dispute triggered by tariffs may not be resolved quickly. However, it is foreseeable that both Europe and the United States will need to rethink their trade strategies with China. After all, in this globalized economic environment, no one can do without the other. Only genuine equal dialogue and cooperation are the correct ways to solve problems. For China, this is also a good opportunity to showcase its technological strength and promote international cooperation.