China, EU agree to start talks on imported EVs tariffs

China and the European Union (EU) have agreed to open talks on the EU’s proposed tariffs on Chinese-made electric vehicles (EVs) imported into Europe.

This follows a visit by Germany’s Economy Minister Robert Habeck, the first by a senior EU official since the tariff proposal sparked tensions.

The EU’s provisional duties on Chinese EVs could reach up to 38.1 per cent and are set to take preliminary effect on July 4th. However, the investigation is ongoing, with definitive duties potentially imposed by November 2nd.

The EU initiated the anti-subsidy investigation, alleging that Chinese EV manufacturers benefit from unfair government support. Habeck reiterated the EU’s stance: “Proven subsidies that are intended to increase the export advantages of companies can’t be accepted.”

He emphasised the need for a level playing field in the global market, stating that open markets rely on fair competition, not artificial advantages.

Habeck clarified that the EU’s proposed tariffs are not punitive measures. He stated that the aim of any countervailing duties would be to compensate any advantage Chinese companies may have gained from government subsidies.

Attribution: The Nikkei Asia