Today, the Eurozone is voting on whether to impose tariffs on electric vehicles (EVs) imported from China, with plans to enforce these tariffs for the next five years. The goal is clear: to protect and promote homegrown EV production in Europe by creating a financial barrier for cheaper, foreign-made vehicles. While this move may seem like a strategic effort to safeguard domestic industries, it raises a familiar question: Do tariffs actually work as intended?

If history has taught us anything, it’s that tariffs often lead to unintended consequences. In theory, raising tariffs should make Chinese EVs more expensive and thus less appealing to European consumers, giving local manufacturers a competitive edge. But in practice, things aren’t so straightforward.

Take a page from the playbook that companies have used to navigate previous sanctions and tariffs. When Russia imposed tariffs and sanctions on foreign-made cars, manufacturers found a way around it by shipping vehicles to Azerbaijan, and from there, rerouting them to Russian consumers. A similar scenario could unfold here: Chinese carmakers may simply redirect their vehicles to non-EU countries with which Europe has more lenient trade agreements, and then funnel the cars back into the Eurozone through these intermediaries.

This kind of tariff dodging isn’t new. Global trade has always been adept at finding loopholes, and multinational companies are particularly good at exploiting them. If Chinese automakers are determined to maintain their foothold in Europe’s lucrative EV market, they’ll likely find ways to work around these new tariffs.

So, while the Eurozone’s vote today may feel like a strong move to protect local innovation, it’s important to consider the limitations of this approach. The reality is that tariffs are often more symbolic than effective in a globalized economy where goods can easily be rerouted. Instead of focusing solely on protectionist measures, the Eurozone might do better to double down on investment in R&D and incentives for local manufacturers to boost their competitiveness. In the end, innovation, not isolation, is what drives long-term success.

Will tariffs make a significant impact, or will global trade routes find ways around them once again? Let’s see how this plays out. But if history is any indication, the outcome might be more complex than policymakers hope.