EU and China agree to talks ahead of new tariffs

Industry News | | MIC Customs Solutions |

Officials from the EU and China are set to meet this week in an effort to reach a deal that will avoid new tariffs on EVs.


The EU and China have agreed to face-to-face talks in an effort to avoid a potential full-scale trade war ahead of the expected imposition of new tariffs from next week.

Unless an agreement is reached, the European Commission is set to add duties of up to 38 percent on imports of electric vehicles from China from July 4th. This is on top of existing ten percent levies on these products.

However, officials from both sides are set to meet in Brussels this week to discuss the issue, following what was described as a “candid and constructive" call between EU trade commissioner Valdis Dombrovskis and his Chinese counterpart Wang Wentao.

Mr Wang also met with German vice-chancellor and economy minister Robert Habeck over the weekend. In a social media post, China's Ministry of Commerce stated that he had emphasized Beijing's "strong dissatisfaction" with what it views as a protectionist measure.

The post added: "If the EU is sincere in sitting down at the negotiating table, China is also willing to accommodate each other’s reasonable concerns through dialogue and consultation, and avoid the expansion and escalation of trade frictions in a rational and professional manner."

It also called on Germany to play a positive role in convincing the EU to meet China halfway on the issue.

China's Global Times also cited observers as stating the best outcome would be for the EU to drop the proposed tariffs and abide by World Trade Organization rules.

Meanwhile, Beijing has already threatened to retaliate against the EU moves with potential duties on products such as EU pork and brandy.