The EU has announced tariffs of 79% on all ceramic table and kitchenware from China, up from a range between 13.1-36.1% previously. This follows an investigation by the European Commission that it said found Chinese ceramics were owned, controlled or guided by “authorities”, receiving preferential financing, land and raw materials. The result of this was artificially low prices, the commission said.
Both national and local governments in China regularly uses subsidies in a wide range of areas, for example automobiles. These subsidies and benefits are a significant advantage for Chinese producers. In order to deal with the tariff backlash that has become almost inevitable, one Chinese automobile producer Chery has announced it is starting production of electric vehicles in Spain later this year. BYD, which has been the subject of US tariffs are also suing the Trump administration to claim back the tariffs they have paid to import their vehicles.
Tariffs are becoming ever-more normalized in global trade, and the dream of free and fair trade is becoming ever-more distant. Protectionism is growing and deglobalization is gathering in momentum.