Good Morning! Do you stop someone that is pouring money in to stop climate change but is also damaging the competitiveness of your industry? Quite the question, right? In today's newsletter, we'll explore three stories that highlight the complex interplay of competing interests in the worlds of business, technology, and finance.

Today’s Topics:

• Electric Vehicles become a lot more expensive in the EU

• SafeAI vs. CommercialAI. Elon drops his lawsuit against Sam Altman

• Hawkish or Dovish, the Fed stays with the Hawks!

Have a good one!

X Nils

TARIFFS
Electric Vehicles Will Become a Lot More Expensive in Europe

What Happened?
The European Union announced new tariffs on Electrics Vehicles (EV) produces in China. These tariffs can go up to 38% of the total prices. This means that prices of those cars will increase significantly next month. The tariffs are not only for Chinese car manufacturers, but also for European and American companies that build EVs in China. The reason that the EU is raising the tariffs, is because China is highly subsidising its car manufacturing industry, which create unequal competition to make EVs in Europe.

Why It Matters

• Raising these tariffs might cost Europe more than it expect in the first place, as China might react with tariffs on European product that China imports. Making it harder for European companies to export to China

• Another interesting factor is climate. Because do we really want EVs to become more expensive as cheaper EVs make for a good competitor against the old combustion cars. The EU is very climate focused, but with this measure it might cut itself in the finger

• Also heard in the market is that the new Chinese car bards, such as BYD and Geely, actually have better cars. Therefore, it might be that customers prefer Chinese manufactured cars over EU manufactured. This would mean that the tariffs will only have little effect.

What's Next 
The new tariffs will enter into force next month, and their impact on the European EV market remains to be seen. Will consumers switch to EU-manufactured EVs, or will the higher prices lead to a resurgence of combustion and hybrid cars? The answer could have significant implications for Europe's climate goals and its position in the global EV race.