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In response to complaints about state subsidies allowing Chinese manufacturers to sell vehicles at below-market prices, the U.S. implemented a bold 100% tariff on all Chinese electric vehicles six months ago. The European Union has followed suit, introducing a sliding scale of tariffs. These protective measures underscore concerns over fair trade and competitive practices, stifling the overseas market for Chinese EVs just as it had started to flourish.
Price Wars in China
Despite these tariffs, Chinese electric vehicle maker BYD has recently reduced the price of smart EVs to under $10,000. This price cut is indicative of a broader trend; the Chinese electric vehicle market is currently entrenched in a price war, with numerous manufacturers slashing prices to maintain market share.