Bloomberg: China Hit by EU Tariffs as High as 66%

Article published: Oct 10, 2019

IB Economics syllabus: International economics (protectionism, tariffs)

This is a superb article for an international economics IA. The EU steel road wheel producers accused their Chinese competitors of dumping (selling below their costs of production). Chinese producers are able to sell at such low prices due to “market-distorting government aid” which is nothing else than subsidies given by the Chinese government. As a result of the investigation, the EU approved a tariff on Chinese producers of steel road wheels of as high as 66%.

Make sure to have a thorough evaluation looking into the effects on different stakeholders, pros and cons, and short-run vs. long-run consequences of these tariffs imposed by the EU.

Source of image: Qilai Shen/Bloomberg

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