China and the European Union are at the negotiation table this week, with hopes to resolve their dispute over proposed tariffs on Chinese-made electric vehicles (EVs), as the deadline for implementing these tariffs is next week.
As we have previously reported, the European Union has announced plans to impose provisional tariffs ranging from 17.4% to 38.1% on imported Chinese EVs by July 4, a move which Tesla says will force them to increase Model 3 prices.
This decision to implement tariffs was made after an investigation by the European Commission, which concluded that Chinese EVs benefit from unfair subsidies that harm European manufacturers. China, however, has strongly opposed these tariffs, arguing that its EV industry has thrived due to technological advancements, market conditions, and efficient supply chains, rather than unfair subsidies.
China has since called on the EU to cancel the proposed tariffs, expressing a willingness to negotiate and avoid a tariff war reminiscent of the one it experienced with the United States during the Trump administration, according to a local report from the Global Times.
In a bid to find common ground, high-level talks are taking place this week between China’s Commerce Minister, Wang Wentao, and European Commission Executive Vice President and Trade Commissioner, Valdis Dombrovskis, ahead of the impending July 4 deadline. (via Reuters)
The results of the negotiations could have an impact in Canada. Last week a report emerged that the Canadian government was preparing to impose similar tariffs on Chinese-made EVs, amid pressure to align with the European Union, and the US, which has also announced tariffs on Chinese-made EVs.
