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China Takes Legal Action Against EU Over Electric Vehicle Tariff Hike

China has launched a legal dispute against the European Union (EU) at the World Trade Organization (WTO) in response to the EU’s decision to raise import tariffs on Chinese electric vehicles (EVs). The case comes on the heels of an EU investigation that concluded Chinese carmakers benefit from state subsidies, giving them an unfair edge in the European market.

Key Details:

  1. WTO Complaint: China’s filing marks its second WTO challenge over higher tariffs, with the complaint aiming to address the EU’s determination that Chinese EV manufacturers benefit from unfair government support.
  2. Impact on Chinese Car Makers: The new EU tariffs range from 17% for BYD, 18.8% for Geely (Volvo’s parent company), to a significant 35.3% for SAIC Motor Corp, making it one of the most heavily affected companies.
  3. WTO Dispute Timeline: Under WTO dispute settlement rules, China and the EU have 60 days to negotiate a resolution. If unresolved, the case may proceed to a WTO panel ruling. However, the WTO’s highest appellate body remains inactive due to a shortage of judges, potentially complicating the resolution process.

The heightened tariffs, which took effect on November 1, reflect growing trade friction between Brussels and Beijing. EU officials argue that China’s subsidies and access to inexpensive raw materials have granted Chinese EV companies excessive leverage over European competitors. In response, Brussels is exploring solutions, such as adjusting price commitments, to address these market imbalances while upholding WTO principles.

Negotiations between the EU and Chinese officials are expected to intensify in the coming weeks, with an EU delegation likely to travel to China to pursue a compromise. Both sides aim to foster fair market conditions while respecting WTO guidelines.

Snap Terminates AI Partnership With Perplexity Amid Strategic Reassessment

Deal Dissolution And Strategic Reassessment

Snap Inc. ended its partnership with Perplexity during the first quarter of 2026, according to its earnings report. The decision cancels previously announced plans to integrate Perplexity’s conversational AI search into Snapchat’s chat interface.

The agreement, first disclosed in November 2025, included a $400 million package in cash and equity. As part of the termination, Snap revised its guidance to exclude any expected revenue contribution from the deal.

Integration Plans And Broader Rollout Challenges

Integration of conversational AI search was intended to expand how users interact with content within Snapchat, enabling real-time responses inside chat. Testing had begun with a limited group of users, but a broader rollout had not been finalised. The termination reflects challenges in aligning product strategy and deployment timelines for AI features within large-scale consumer platforms.

Solid User Growth And Financial Momentum

Despite the cancellation, Snap reported continued growth across key metrics. Global daily active users increased 5% year-on-year to 483 million, while monthly active users rose 5% to 965 million. Growth was supported by product updates, including features such as Snap Map and augmented reality Lenses. Evan Spiegel said the company is focused on improving revenue performance and free cash flow alongside user growth.

Investment in Innovation and Workforce Restructuring

Looking ahead, Snap Inc. continues to invest in long-term product development, including intelligent eyewear and related technologies, with further details expected at the AWE event on June 16. At the same time, these investments follow a broader restructuring effort. The company reduced approximately 16% of its global workforce, a move linked in part to increased use of automation and AI tools across its operations. The combination of continued product investment and workforce adjustments reflects how the company is reallocating resources while integrating AI into its development and operating model.

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