This week in charts
Top export destinations of Chinese cars
Unemployment
Mortgage rates
China Exposure
Growth vs. value
Global market capitalization
S&P 500 sector composition
Global valuations
Hedge fund performance
USD vs. global currencies
EU to Impose Tariffs Up to 45% on Chinese Electric Vehicles
The European Union voted on Friday to impose tariffs as high as 45% on electric vehicles from China, threatening a broader trade conflict with Beijing which has already vowed to protect its companies.
Shares in European automakers rose after the vote.
The European Commission, the bloc’s executive arm, can now proceed with implementing the duties, which would last for five years. Ten member states voted in favor of the measure, while Germany and four others voted against and 12 abstained, according to people familiar with the results.
The decision by the EU comes after an investigation found that China unfairly subsidized its industry. Beijing denies that claim and has threatened its own tariffs on European dairy, brandy, pork and automobile sectors.
The bloc is actively trying to reduce its dependencies on China, with former European Central Bank President Mario Draghi warning last month that “China’s state-sponsored competition” was a threat to the EU that could leave it vulnerable to coercion. The EU, which did €739 billion ($815 billion) in trade with China last year, was split on whether to move forward with the duties.
The EU and China will continue negotiations to find an alternative to the tariffs. The two sides are exploring whether an agreement can be reached on a mechanism to control prices and volumes of exports in place of the duties.
China’s commerce ministry acknowledged the EU’s political will to continue negotiations while warning that the tariffs will “shake and hinder” the confidence of Chinese companies investing in Europe.
Chinese EV makers will have to decide whether to absorb the tariffs or raise prices, at a time when slowing demand at home is squeezing their profit margins. The prospect of duties has prompted some Chinese automakers to consider investing in factories in Europe, which might help them dodge tariffs.
The additional tariffs already have slowed Chinese carmakers’ momentum in Europe, with their sales plunging 48% in August to an 18-month low. The region is a desirable destination for the nation’s manufacturers because EVs sell in relatively high numbers and at much more robust prices than other export markets.
The share of electric cars sold in the EU that were made in China climbed from around 3% to more than 20% in the past three years. Chinese brands accounted for around 8% of that market share, as international companies that export from China including Tesla Inc. taking up the rest.
This week’s fun finds
EdgePoint’s volleyball team hit the court yesterday with their first game of the season. Despite falling short to clinch the “w”, the team collaborated seamlessly and demonstrated immense skill and resilience on the court. The game was action packed with excellent serves, blocks and even some dives.
Purple place: Mets unveil the new Grimace seat at Citi Field
The kid-friendly McDonald’s character made another appearance at the ballpark Monday, when the New York Mets unveiled a commemorative purple seat in section 302 to honor “his special connection to Mets fans.”
Wearing his pear-shaped purple costume and a baseball glove on backwards, Grimace threw out a funny-looking first pitch — as best he could with those furry fingers and short arms — before New York beat the Miami Marlins at Citi Field on June 12.
That victory began a seven-game winning streak, and Grimace the Mets’ good-luck charm soon went viral, taking on a life of its own online.
New York is 53-31 since June 12, the best record in the majors during that span. The Mets were tied with rival Atlanta for the last National League playoff spot as they opened their final homestand of the season Monday night against Washington.
