Chinese electric vehicle manufacturers saw their shares fall after Turkey imposed new tariffs on imports from the People's Republic, raising worries that the European Union will make a similar decision soon.
NIO Inc (NYSE:NIO) ADRs fell 7.5% in New York on Tuesday, Xpeng Inc (NYSE:XPEV) 5.1%, Li Auto Inc 2.8% and Geely Automobile 4.88%.
Turkey's trade ministry said at the weekend that it will impose a 40% additional tariff on Chinese vehicle imports "in order to increase and protect the decreasing share of domestic production".
Following pressure from many European countries claiming Chinese EVs have been heavily subsidized by Beijing, the European Commission launched an anti-subsidy investigation earlier this year.
The EC is expected to announce next week whether to impose provisional extra tariffs.
US President Joe Biden last month hiked import levies on Chinese EVs to about 100% from 25%.
Chinese auto groups have an EV market share of around 10% in Europe from around 200,000 unit sales per year.