The Chinese Ministry of Commerce announced a cooperation agreement with the European Union (EU) to prevent the imposition of tariffs on electric vehicles (EVs) originating from China, as initially proposed by Brussels.
The tariffs, which could be as high as 38.1 per cent, are scheduled to take effect in July unless a mutual agreement is reached.
The announcement followed a virtual meeting between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Valdis Dombrovskis.
The discussions focused on examining the subsidies that have prompted the EU’s proposed tariffs.
“The two parties have agreed to initiate consultations regarding the EU’s anti-subsidy investigation into Chinese-origin electric vehicles,” the Ministry of Commerce stated in a message posted on its social media account on X.
German Economy Minister Robert Habeck, speaking from China on the same day, clarified that these tariffs should not be viewed as punitive measures.
“It is important to understand that these are not punitive tariffs. The goal is to establish common criteria for market access,” Habeck explained.
In a related development, the Asian country has announced additional tariffs on pork imports from the EU, a move that particularly affects Spain’s exports.
This retaliatory measure underscores the broader context of trade tensions between China and the EU.
The tariffs on EVs, if implemented, may be subject to retroactive annulment should a subsequent agreement be reached.
This cooperation agreement represents a step towards resolving the dispute, with both parties showing willingness to negotiate and find a common ground.
