EU and China in Talks Over Tariff Dispute

Increasing Tariffs

The European Union plans to raise tariffs on Chinese electric vehicles by up to 38.1%, prompting potential retaliation from China with a 25% tariff on large internal combustion cars from Europe. Germany has voiced its opposition to these tariffs.

Negotiations Underway

Following months of disagreements and new import duties, officials from the EU and China have engaged in discussions to resolve the escalating tariff dispute.

Trade Barriers

The EU claims that Chinese EVs benefit from unfair government subsidies, while China accuses the EU of protectionism and violating trade rules.

High-Level Talks

EU Trade Commission Valdis Dombrovskis and Chinese counterpart Wang Wentao have discussed the tariffs and pledged to continue negotiations in the coming weeks. Germany’s Vice-Chancellor also met with Wang to address the issue.

Threats of Legal Action

China’s Ministry of Commerce has threatened legal action through the World Trade Organization to defend its rights. The ministry expressed firm opposition to the tariffs and emphasized the importance of dialogue to find a constructive solution.

Industry Concerns

German automakers and Stellantis have criticized the tariffs on Chinese EVs, warning of potential negative impacts on green transitions and consumer interests. They advocate for dialogue and negotiation to avoid escalating trade tensions.

Potential Retaliation

In response to the EU’s tariff hike, Chinese manufacturers propose retaliatory measures, including a 25% tariff on European vehicles with large combustion engines.