China’s Unexpected Countermove in the EV Trade War
In a surprising twist to the ongoing trade tensions, China has retaliated against Western tariffs on its electric vehicles (EVs) by imposing steep duties on food imports—targeting European dairy, American soybeans, and Australian wine. Analysts call it a “food fight” with major political and economic implications.
Why China is Striking Back
The clash began when the EU and U.S. imposed heavy tariffs on Chinese EVs, accusing Beijing of unfair subsidies and market distortion. The EU’s duties could reach 48%, while the U.S. hiked its tariffs to 100%, branding them as “protectionist” by China.
Instead of a direct auto tariff response, Beijing took aim at agriculture, a sector with deep political influence in Western nations.
China’s Food Tariffs: Key Targets
On Tuesday, China’s Ministry of Commerce announced:
– European dairy (up to 25%) – Impacting major exporters like France and Germany.
– American soybeans (30% hike) – A blow to U.S. farmers dependent on Chinese demand.
– Australian wine (revived tariffs) – Reversing a recent diplomatic thaw.
Beijing’s Strategic Play
China’s move is calculated for maximum political pressure:
1. Hitting Sensitive Sectors – Farmers in the EU and U.S. hold electoral sway.
2. Avoiding EV Escalation – China still depends on Western auto markets.
3. Expanding Trade Tactics – Signaling it can retaliate beyond tech and manufacturing.
Global Fallout: Anger and Uncertainty
- EU dairy producers fear financial ruin.
- U.S. soybean farmers, still recovering from past trade wars, face renewed strain.
- Australian winemakers, just re-entering China, are blindsided.
Trade experts warn of a widening conflict, with possible retaliation on steel, batteries, or rare earth minerals.
What Comes Next?
With negotiations frozen, both sides are preparing for further escalation. The EU may target Chinese steel, while the U.S. could restrict battery imports. China has hinted at more retaliatory measures, possibly luxury goods.
This “food fight” highlights how the green tech race is reshaping global trade—with unpredictable consequences.
Follow the latest updates on this evolving trade war.
