China has intensified its response to Western EV tariffs by imposing retaliatory duties on major agricultural imports from the U.S., EU, and Canada.

The move targets politically sensitive sectors — including U.S. soybeans, Canadian canola, European pork, and French cognac — in an effort to pressure governments into reversing EV tariffs of up to 100%. The impact has been significant, with Canadian canola exports to China effectively halted and French cognac shipments down 35% since duties were introduced, and buyers increasingly exploring alternative long-term supply options.

Despite growing pressure from farming groups, Western governments remain unlikely to retreat, citing competition, supply chain security, and China’s rising dominance in the global EV market. Analysts warn that once trade flows and logistics are re-routed, the damage to Western producers could outlast any eventual compromise on EV tariffs.

Ford UK has warned that new taxes on electric vehicles would further slow already fragile EV demand, as the government considers introducing a pay-per-mile charge from 2028.

Managing director Lisa Brankin said EV uptake has “lost momentum” and that additional levies would act as a brake on adoption, pointing to falling resale values and widespread discounting as signs of a distorted market. She also urged the government to maintain incentives such as the £3,750 EV grant and lower company-car tax rates, which remain critical for meeting the UK’s 2030 zero-emission sales targets.

Despite recent growth in EV registrations, Brankin noted that consumer demand is not keeping pace with policy ambitions — and warned that new taxes risk undermining progress just as the industry is trying to accelerate the shift.