Potential Tariff War between China and EU

Published on Author dillard

Issues concerning the EU and Chinas relationship in the solar industry have have increased economic tensions to a point that many fear an oncoming trade war. Since Chinese solar panels cost nearly 45 percent less than solar panels made in the EU, the EU has a market which sales are a continual battle against sales of Chinese made products. The EU has allegations that concern China unfairly subsidizing production of solar panels which give them an unfair advantage. China also rebuffs this claim and also has issues of their own. They believe that the EU illegally favors its domestic solar panel producers but the EU knows that hampering the Chinese solar panel producers could inhibit their own domestic industry by destroying its ability to develop clean energy. Currently this issue has not been solved but in many opinions, tariffs on China would inevitably cause a detriment to Europe’s clean energy production and installation, especially in the short run.

2 Responses to Potential Tariff War between China and EU

  1. If you look at the history of trade spats between the US and the EU, and between China and others, there is no evidence that a dispute turns into a war. The normal outcome is that if the EU prevents Chinese exports, then China will target some comparable-value goods (politically if not economically) and that will be where things end. However, in trade “temporary” measures have a habit of staying in place … we still tax imported trucks based on a reprisal aimed at the original VW van in 1963, where the issue was European restrictions on frozen chicken.