Sure because having domestic industry is a strategic decision. Also the reason why US carmakers won't go bust. Chinese competition simply won't be allowed. Easy as that.
Then the domestic industry will just rot from inside. It is usually a worse outcome than if the domestic industry were competing in the open market.
Tariffs and other protectionist measures result in the low quality high priced product of the protected industry being sellable only in the domestic market. Where is China is going to sell to the rest of the world. 340M vs. almost 8B of addressable market. It is a writing on the wall.
Also the Chinese aren't selling to the rest of the World. The EU has also imposed harsh tariffs on BYD and others to protect its industry.
BYD had had a bus factory for a while in Europe but is just about to roll the first cars off their plant in Hungary.
This has nothing to do with EU rules and everything to do with the Big 3 deciding in the early to mid 2010s that SUVs sold in America were so profitable they really didn’t need to do business anywhere else.