It sets precedent, and has already led to a (by Chinese foreign policy standards) fairly vicious response [0][1][2].

This is also part of the EU's larger tariffs against China [3].

[0] - https://www.globaltimes.cn/page/202605/1361926.shtml

[1] - https://www.globaltimes.cn/page/202605/1362200.shtml

[2] - https://www.globaltimes.cn/page/202605/1362161.shtml

[3] - https://www.ft.com/content/e28fe696-ac30-4543-a105-febc82789...