Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.
Trade tensions between the world’s leading export powers could rise as higher EU tariffs on electric vehicles from China — which peak at 45% — kick in today. The move is a setback for Chinese producers already effectively shut out of the US market and it comes after months of talks, threats and lobbying by major European carmakers against the levies. The standoff raises the risk of retaliation in a relationship that generated €739 billion in bilateral merchandise trade in 2023. While discussions go on, Chinese automakers will continue to expand in the region and are building a team of European executives. Chinese EV maker BYD recently hired former UK chief of Stellantis, we’ve learned.