Chinese EV Maker Nio Slams ‘Unreasonable’ US, EU Tariffs

William Li, the founder of Nio Inc., criticized the European Union and the United States for their plans to impose tariffs on electric vehicles from China, deeming these actions unreasonable. He emphasized the importance of expanding electric vehicle use to address climate change and promote global sustainable development, arguing that hindering this progress would be short-sighted. The EU has proposed tariffs by claiming that Chinese manufacturers benefit from unfair state subsidies and are flooding the market with excess production. A vote on this proposal is anticipated next month. China has rejected the EU's anti-subsidy investigations as protectionist and is currently negotiating with the EU to find alternatives to tariffs. Discussions center around establishing a framework for controlling export prices and volumes, although solutions have not yet been reached. Meanwhile, U.S. tariffs on Chinese electric vehicles have also taken effect, with President Biden announcing significant increases. Li pointed out that the U.S. and EU tariffs reflect China's strong competitiveness in the electric vehicle sector but cautioned that mixing political motives with economic interactions could harm global development in the industry. From a transportation perspective, the ongoing tariff disputes could create barriers that hinder the transition to electric mobility. It is critical for governments to engage in constructive dialogue rather than resorting to protectionism, as the transformation to sustainable transportation relies on global collaboration. Implementing tariffs may not only raise vehicle prices for consumers but could also stall innovation by limiting competition and stifling market dynamics necessary for the electric vehicle industry's growth.