NIO Inc.'s stock plummeted by 4.9% in morning trading on Wednesday, as investors reacted to comments from China's Commerce Minister Wang Wentao regarding potential additional tariffs from the European Union on electric vehicles.
During a meeting with German Vice Chancellor Robert Habeck, Wang expressed concerns that additional EU tariffs on EVs could impede free trade between China and Germany. He stated that he hopes a solution in line with World Trade Organization rules will be reached.
As a major Chinese electric vehicle manufacturer, NIO could be significantly impacted if the EU imposes additional tariffs on imported EVs from China. Such tariffs would likely increase costs and potentially dampen demand for NIO's vehicles in the European market.
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