The European Union has taken a significant step towards imposing new tariffs on Chinese electric cars, requiring automakers to secure bank guarantees to cover the impending taxes, set to be finalized in October. This decision stems from the EU's findings of unfair subsidies to Chinese electric car manufacturers. Talks to resolve the dispute are ongoing, but provisional tariffs, varying by manufacturer, have been imposed. Concerns are growing globally about China's economic strategies, leading to increased tariffs from various countries. China has threatened retaliation, and the trade case has caused a divide within Europe's car industry. This development may result in Chinese automakers establishing factories in Europe to evade tariffs.