EU Approves Tariffs of Up to 45 Percent on Chinese EVs After Contested Vote |
The European Commission said today it earned the necessary support in a closed-door vote of member states for plans to impose tariffs on Chinese battery-operated electric vehicles (EVs). The proposal follows a probe that found Beijing unfairly subsidized its industry, and would put new duties of up to 35 percent on imports, adding to a 10 percent base tariff. Ten countries backed the measure, five opposed it, and twelve abstained, unnamed sources told Bloomberg. China’s chamber of commerce to the European Union (EU) voiced “deep disappointment” in the measures, which Brussels said it could reconsider if the EU and China find a “fully [World Trade Organization]-compatible” solution to addressing subsidies.
Germany was among the countries that pushed against the move over fears of a tariff war breaking out, while France and other countries argued that it was needed to protect European firms. It comes amid broader debates about what is an appropriate industrial policy for the bloc; former European Central Bank leader Mario Draghi called in a report last month for strong steps to boost European competitiveness and warned that Chinese “state-sponsored competition” in particular was a threat to European jobs. (SCMP, Bloomberg, Euronews)
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“In contrast with the China shock that began in the 1990s, when the United States bore the brunt of a huge loss of market share and jobs in the manufacturing sector, the coming version will hit Europe hardest. If Beijing gets its way, Europe could be reduced to little more than a deindustrialized export market for Chinese goods and industries, even as it is threatened by a resurgent Russian military at its borders,” CFR experts Liana Fix and Heidi Crebo-Rediker write for Foreign Affairs.
“The vote turns the page on arguably the biggest trade dispute in the history of EU-China relations—but it is by no means finished, and may ultimately ignite a long-predicted trade war,” South China Morning Post’s Finbarr Bermingham writes.
For Foreign Affairs, CFR President Michael Froman discusses the choices the next U.S president will face regarding trade and competition policy.
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Middle East and North Africa |
Global Oil Prices Rise in Continued Mideast Clashes |
U.S. President Joe Biden said yesterday that he was discussing with Israel the possibility of strikes on Iranian oil facilities as Israel continues to weigh its response to the missile barrage of early this week. When Biden was asked if he’d support this move, his ambiguous reply was followed by oil prices rising. Meanwhile, Israeli strikes in southern Beirut last night targeted a potential successor to Hezbollah’s Hassan Nasrallah, unnamed Israeli officials said. The World Health Organization (WHO) director reported that at least twenty-eight healthcare workers were killed between Wednesday and Thursday in Lebanon, while Lebanon’s military reported the first deaths of its soldiers in Israel’s ground offensive. (NYT, WaPo)
This Expert Brief by CFR Senior Fellow Bruce Hoffman explains why the Hezbollah leader's killing has dealt a crushing blow to the group.
Libya: All oilfields and export terminals in the country are reopening after being halted in a dispute about control of the country’s central bank; rival political factions resolved the spat and found a new central bank governor. (Reuters)
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Seoul, Washington Reach Deal on Cost-Sharing for U.S. Troops in South Korea |
As part of the five-year deal, South Korea will continue to increase its portion of the sharing cost to host some 28,500 U.S. personnel in South Korea. Its contribution will rise 8.3 percent in 2026 and in the following three years, rise at a rate based on the consumer price index. The deal was concluded early in what was seen as an effort to wrap it up before the U.S. election. (Reuters)
For the Asia Unbound blog, Scott A. Snyder unravels some of South Korea’s anxieties about the U.S. election.
Japan: The government will inspect airports built on old military bases after a bomb dropped by the United States in World War II exploded under the taxiway at an airport in southern Japan this week. There were no injuries from the explosion. (Nikkei)
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Malaysia Carries Out First State Visit to Bangladesh in Eleven Years |
Bangladesh’s interim government aims to increase trade with the Association of Southeast Asian Nations (ASEAN), which Malaysia will chair next year. The visit is also due to cover the conditions of migrant workers and the Rohingya refugee crisis. (AP)
This Backgrounder explains the regional role of ASEAN.
Armenia/Azerbaijan: Lawyers for Ruben Vardanyan, a former top official in the Armenian enclave of Nagorno-Karabakh, filed a suit claiming he was tortured and denied a quick trial in Azerbaijan. The Azerbaijani government did not comment. (Reuters) |
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CFR’s Robert McMahon and Carla Anne Robbins discuss the escalating Iran-Israel conflict involving Lebanon, Harris and Trump holding town halls for undecided Hispanic voters, Biden heading to Germany to shore up Ukraine support, and more. |
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UK Relinquishes Control of Chagos Islands to Mauritius in Deal for Military Base Access |
The government of Mauritius has long said it was forced to hand over the Chagos Islands to the United Kingdom (UK) in exchange for its independence in 1968. As part of the agreement, the United States and UK will continue to operate the Diego Garcia military base on the islands. (BBC)
Rwanda: Eleven people have died from the Ebola-like Marburg virus in the East African country, health officials said yesterday. They continue to try to trace the outbreak, which the WHO’s director said presented a “very high risk at the national level, high at the regional level, and low at the global level.” (AP)
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U.S., Microsoft Announce Actions Against Russian Hacking Group |
A hacking group linked to Russian intelligence tried to target think tanks, journalists, and current and former U.S. officials through phishing attacks, the U.S. Justice Department announced yesterday, saying that internet domains linked to the actors had been seized. Microsoft worked to restrain internet domains used by the same actors. (AP, DOJ)
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Mexico’s Supreme Court to Consider Request to Review Judicial Overhaul |
The controversial revamp would allow for direct election of judges, and it passed just before former President Andrés Manuel López Obrador left office last week. The top court voted 8–3 yesterday that it was competent to rule on whether the reform affects judicial independence, possibly opening the door to further challenges against it. (Reuters)
Brazil: The government published an order yesterday that will put in place a tax of 15 percent on the profits of multinational firms, saying the move aimed to bring Brazil in line with the Organization for Economic Cooperation and Development (OECD) and Group of Twenty (G20) efforts to combat tax evasion. (Reuters)
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Election Officials Scramble to Cope With Destruction of Hurricane Helene |
Florida adjusted its voting rules to cope with the aftermath of Hurricane Helene, allowing for new consolidated voting centers in hard-hit counties as well as flexibility regarding requesting mail-in ballots. Storm damage in western North Carolina could affect some polling stations, and election officials there as well as in Georgia said they were working to minimize disruptions to voting. (CBS, NYT)
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Council on Foreign Relations |
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