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EU-China talks on E-vehicle imports continue amid Tariff threats

  • By Al Mayadeen English
  • Source: Agencies
  • 2 Jul 2024 21:10
3 Min Read

If an agreement isn't reached by July 4th, imports of Chinese electric vehicles could face increased tariffs.

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  • Unsold 2024 Ioniq 5 electric vehicles sit on display at a Hyundai dealership Sunday, June 30, 2024, in Highlands Ranch, Colo. (AP Photo/David Zalubowski)
    Unsold 2024 Ioniq 5 electric vehicles sit on display at a Hyundai dealership Sunday, June 30, 2024, in Highlands Ranch, Colo. (AP Photo/David Zalubowski)

On Tuesday, EU spokesperson Balazs Ujvari said that discussions between the EU and China concerning imports of electric vehicles are ongoing.

If an agreement isn't reached by July 4th, these imports could face increased tariffs.

"Contacts are ongoing between us and the Chinese side, and the deadline that we have in mind, that we are working towards is the 4th of July. Then a provisional decision will be made," Ujvari told reporters in Brussels.

Making tough decisions

European Commission President Ursula von der Leyen relayed in May that the EU is adamant about resorting to tough measures to protect its economy and security amid strained trade ties with China.

"China that plays fair is good for all of us," she said in her statement, adding, "Europe will not waver from making tough decisions needed to protect its economy and its security...We will defend our companies, we will defend our economies."

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US, China agree to push for tariff pause extension as deadline nears

Read more: China expresses readiness to strengthen relations with Australia

Von der Leyen claimed there were "imbalances that remain significant" and "a matter of great concern," as she spoke of Chinese subsidies for electric cars and steel that were "flooding the European market".

The European Commission's trade commissioner suggested that tariffs on Chinese electric vehicles (EVs) might be implemented by June, following the initiation of an investigation into state assistance for electric car production in China. It is worth noting that any measures must be implemented by July 4.

China retaliates

In response to the announcement, China warned that additional EU tariffs on imports of Chinese electric vehicles would "harm Europe's own interests".

"It goes against the principles of market economy and international trade rules, undermines China-EU economic and trade cooperation, as well as the stability of the global automobile production and supply chain," said Chinese Foreign Ministry spokesperson Lin Jian.

The sources stated that tariffs are expected to be "up to 25 percent" in addition to the existing 10 percent duty.

"We urge the EU side to honor its commitment of supporting free trade and opposing protectionism and work with China to uphold the overall interests of China-EU economic and trade cooperation," Lin stated, adding, "China will take all necessary measures to firmly safeguard its legitimate rights and interests".

Read more: China warns of WTO lawsuit amid EU's electric car import restrictions

In 2023, China held the position of being the EU's primary trading partner, representing 20.5% of the EU's total imports. Machinery and vehicles constituted the most imported categories of Chinese manufactured goods into the EU.

  • tariffs
  • Europe
  • electric cars
  • electric vehicles
  • China
  • European Union

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