The European Union and the United States said they will begin imposing new tariffs on Chinese-made electric vehicles on July 1, in a coordinated step aimed at countering what officials describe as unfair state support for Chinese automakers.

According to the Reuters report, both sides have pointed to subsidy concerns and broader supply-chain security risks as justification for the move. The policy is expected to raise costs for Chinese EV imports and could add fresh tension to already strained trade relations between Beijing and Western capitals.

The tariffs reflect a wider push by the EU and US to protect domestic auto industries as competition in the electric vehicle market intensifies. They also come as governments across Europe and North America weigh how to balance industrial policy, consumer prices, and dependence on foreign-made battery supply chains.

The new duties are set to take effect next week, with market watchers now focused on whether China will respond with retaliatory measures or complaints through trade channels.