China seeks EU tariff removal on EVs by July 4

Beijing has urged the European Union to retract its preliminary tariffs on Chinese electric vehicles by July 4, following an agreement to resume trade talks.

The EU’s provisional tariffs, which can go up to 38.1 per cent, are set to take effect by July 4 while it investigates alleged unfair subsidies to Chinese EV makers. China, warried of another tariff dispute like the one with the US, expressed willingness to negotiate and warned of countermeasures if necessary.

Both sides agreed to restart negotiations after a call between EU Commissioner Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao, coinciding with a visit to China by Germany’s economy minister.

The Global Times reported that the ideal outcome would be for the EU to cancel its tariff plan before the July 4 deadline, emphasising that escalating trade tensions would be detrimental for both parties.

The tariffs are scheduled for finalisation on November 2, concluding the EU’s anti-subsidy investigation. Meanwhile, China has hinted at potential retaliatory actions, including an anti-dumping investigation into European pork and possible tariffs on European dairy goods and large-engined petrol cars.

Attribution: Reuters, China’s Global Times.