Blocking or Embracing the Competition: Discussing the Trade War on the Electric Vehicle Industry from a Global Perspective

Blocking or Embracing the Competition: Discussing the Trade War on the Electric Vehicle Industry from a Global Perspective | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Blocking or Embracing the Competition: Discussing the Trade War on the Electric Vehicle Industry from a Global Perspective Arthur William Fodouop Kouam This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-5508657/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This study examines the multifaceted impact of the ongoing US-China trade war on the global electric vehicle (EV) industry, scrutinizing how tariffs, supply chain disruptions, and competitive dynamics have reshaped production costs, market share, and innovation strategies. Utilizing a mixed-methods approach, we conducted quantitative analyses through Multiple Linear Regression (MLR) on data collected from 20 leading EV markets. We complemented these findings with qualitative insights from semi-structured interviews with 15 industry experts. Our analysis reveals that the imposition of tariffs significantly elevates production costs for EV manufacturers, leading to a notable shift in market share from Chinese firms to domestic producers in tariff- imposing countries. Furthermore, the findings illustrate that companies embracing collaborative competition tend to foster higher levels of innovation compared to those adopting protectionist measures. By integrating International Trade Theory and Dynamic Capabilities Theory, this research adds to the existing literature on trade wars and industrial competitiveness, highlighting that while tariffs may offer temporary protections, they hinder long-term innovation and resilience in the EV sector. This study fills a critical gap by providing a comprehensive analysis of the trade war's implications on a global scale, offering strategic recommendations for policymakers and industry stakeholders navigating a rapidly evolving landscape. Jelcodes: F13, L62, O38 Electric vehicles (EV) Innovation strategy Market dynamics Supply chain disruptions Tariffs Trade war Full Text Additional Declarations The authors declare no competing interests. All participants consented to the study and publishing the data. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-5508657","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":381658498,"identity":"9849c4dd-32cf-482b-87b5-aee4438b08e6","order_by":0,"name":"Arthur William Fodouop Kouam","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA0ElEQVRIiWNgGAWjYDACZubGAww2DIwNIM4HAxs7IrQwNhxgSINoYZxRkJZMhDVIWph5PhyCWIcPGBxnbDjMk2Aj2y+RfOyxjcEBZgb2w0c34NVyGKwlzXjmjLR04xyDO3wMPGlpN/BpMQNp4f1xOHHDjRwz6RyDZ8wMEjxmhLXwJEC1WIAsJU0LAzFa7IFqDs4B+aXnWbphj0FaMhshv0j2Hz744A0oxNiTjz348cfGjp/98DG8WkCAiQdCsyGRBADjD2Qto2AUjIJRMArQAQDzZk/ZBVo+7AAAAABJRU5ErkJggg==","orcid":"https://orcid.org/0009-0009-3030-1094","institution":"Sanya University","correspondingAuthor":true,"prefix":"","firstName":"Arthur","middleName":"William Fodouop","lastName":"Kouam","suffix":""}],"badges":[],"createdAt":"2024-11-23 07:42:36","currentVersionCode":1,"declarations":{"humanSubjects":false,"vertebrateSubjects":false,"conflictsOfInterestStatement":false,"humanSubjectEthicalGuidelines":false,"humanSubjectConsent":false,"humanSubjectClinicalTrial":false,"humanSubjectCaseReport":false,"vertebrateSubjectEthicalGuidelines":false},"doi":"10.21203/rs.3.rs-5508657/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-5508657/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":70616588,"identity":"a61eace0-c99d-475e-8b82-7bb787f2f0b2","added_by":"auto","created_at":"2024-12-05 02:10:47","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":355405,"visible":true,"origin":"","legend":"","description":"","filename":"MaindocumentRSEPDiscussingtheTradeWarontheElectricVehicleIndustry.edited.pdf","url":"https://assets-eu.researchsquare.com/files/rs-5508657/v1_covered_e9ee2c7a-5370-4d89-b71e-395b3775ea81.pdf"}],"financialInterests":"\u003cp\u003eThe authors declare no competing interests.\u003c/p\u003e\n\u003cp\u003eAll participants consented to the study and publishing the data.\u003c/p\u003e","formattedTitle":"\u003cp\u003e\u003cstrong\u003eBlocking or Embracing the Competition: Discussing the Trade War on the Electric Vehicle Industry from a Global Perspective\u003c/strong\u003e\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Electric vehicles (EV), Innovation strategy, Market dynamics, Supply chain disruptions, Tariffs, Trade war","lastPublishedDoi":"10.21203/rs.3.rs-5508657/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-5508657/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study examines the multifaceted impact of the ongoing US-China trade war on the global electric vehicle (EV) industry, scrutinizing how tariffs, supply chain disruptions, and competitive dynamics have reshaped production costs, market share, and innovation strategies. Utilizing a mixed-methods approach, we conducted quantitative analyses through Multiple Linear Regression (MLR) on data collected from 20 leading EV markets. We complemented these findings with qualitative insights from semi-structured interviews with 15 industry experts. Our analysis reveals that the imposition of tariffs significantly elevates production costs for EV manufacturers, leading to a notable shift in market share from Chinese firms to domestic producers in tariff- imposing countries. Furthermore, the findings illustrate that companies embracing collaborative competition tend to foster higher levels of innovation compared to those adopting protectionist measures. By integrating International Trade Theory and Dynamic Capabilities Theory, this research adds to the existing literature on trade wars and industrial competitiveness, highlighting that while tariffs may offer temporary protections, they hinder long-term innovation and resilience in the EV sector. This study fills a critical gap by providing a comprehensive analysis of the trade war's implications on a global scale, offering strategic recommendations for policymakers and industry stakeholders navigating a rapidly evolving landscape.\u003c/p\u003e\n\u003cp\u003eJelcodes: F13, L62, O38\u003c/p\u003e","manuscriptTitle":"Blocking or Embracing the Competition: Discussing the Trade War on the Electric Vehicle Industry from a Global Perspective","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2024-12-05 02:02:40","doi":"10.21203/rs.3.rs-5508657/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"36455558-3e80-4a08-88fb-6fc7f134c3aa","owner":[],"postedDate":"December 5th, 2024","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2024-12-05T02:02:40+00:00","versionOfRecord":[],"versionCreatedAt":"2024-12-05 02:02:40","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-5508657","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-5508657","identity":"rs-5508657","version":["v1"]},"buildId":"qtupq5eGEP_6zYnWcrvyt","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}