Lots of news about the European Commission potentially issuing retroactive tariffs (and increased tariffs) on Chinese EV imports such as BYD, Gilly, SAIC, Nio, and even Tesla (which has operations in China). Could happen as soon as July 2024. China is fighting it and sending diplomats as we speak.
The CEOs of some European auto firms like Mercedes have argued against tariffs, fearing that it could undercut their market shares in China since China would likely issue retaliatory tariffs. Stellantis' CEO Carlos Tavares initially called for tariffs on Chinese EVs in 2022 and appears to continue to support them.
Thoughts? Some are saying that Stellantis and Renault will benefit in the short-term, at least. One research firm predicts that automakers like BMW, Mercedes, and Porsche would suffer most from retaliatory tariffs.
I own no stocks being discussed and have been learning about this over the past month. I was interested in purchasing some European auto shares once this matter is settled.
Makes me more interested in purchasing Toyota since the EU-Japan economic partnership will reduce tariffs over time and eventually remove them altogether. Lexus sales also grew by 46% in Europe in 2023. No wonder Toyota stock keeps going up (at least recently).
Thoughts?
