Beware: Electric Vehicle Tariffs Can Be Deceptive

Stellantis CEO Carlos Tavares Warns of Major Battle with Chinese Rivals in European EV Market

In a recent interview with Reuters, Stellantis Chief Executive Carlos Tavares issued a stark warning about the looming battle with Chinese rivals in the European market for electric vehicles (EVs). Tavares emphasized the potential consequences for jobs and production as tensions escalate among Beijing, Brussels, and Washington over EV trade.

The European Union is set to make a crucial decision next month on whether to impose additional tariffs on Chinese carmakers, following in the footsteps of the United States, which plans to levy duties of up to 100% on Chinese-made EVs and materials by August 1.

Tavares expressed concerns about the impact of tariffs on Chinese vehicles imported to Europe and the U.S., stating that they pose a significant challenge for Western automakers in terms of cost competitiveness. He warned that such tariffs could lead to restructuring within the industry to counter the threat from lower-cost Chinese manufacturers.

The Stellantis CEO also highlighted the potential inflationary effects of tariffs, which could impact sales and production in the regions where they are imposed. Tavares underscored the need for European governments to confront the reality of the situation and take decisive action to address the growing competition from Chinese automakers.

As the battle for market share intensifies, Tavares emphasized the importance of collaboration with labor unions and outlined Stellantis’ strategy to expand its global offerings by selling EVs from its Chinese partner, Leapmotor, outside of China. By actively participating in the Chinese offensive, Tavares aims to position Stellantis as a key player in the evolving landscape of the EV market.

With the European auto sector facing overcapacity and the rise of Chinese OEMs in the region, Tavares stressed the urgency of addressing these challenges to ensure the competitiveness and sustainability of the industry. As the industry braces for a period of intense competition and change, Stellantis is gearing up for a tough battle ahead in the rapidly evolving EV market.