China and EU to discuss EV tariff hike

China and the EU have agreed to hold discussions regarding proposed tariffs on Chinese-made electric vehicles (EVs) in the European market.

This decision follows a call on Saturday between EU Commissioner Valdis Dombrovskis and China’s Commerce Minister Wang Wentao. The call took place during a visit to China by Germany’s economy minister, Robert Habeck, who emphasized that the doors for discussion remain “open.”

The tariff measure, announced earlier this month, stems from an investigation initiated last year by the European Commission. The probe aimed to determine if European competitors were being unfairly disadvantaged by Chinese subsidies that enable manufacturers to maintain artificially low costs.

China has denied these allegations, asserting that its EV industry has grown organically.

Despite this, provisional European Union duties of up to 38.1% on imported Chinese-made EVs are scheduled to take effect on July 4th.