Trade Wars: EU VS China

The escalating trade tensions between the European Union and China are set to intensify with the imposition of punitive tariffs by the EU on Chinese-made electric vehicles (EVs). Starting Thursday, the EU will add extra duties ranging from 17% to 38% on top of the existing 10% tariff. China has until November 3 to persuade the EU to reverse these tariffs before they become permanent. This note explores the strategies, historical precedents, and potential outcomes of this burgeoning trade conflict.