China and the EU discuss potential tariff hikes on Chinese electric vehicles

China and the European Union are considering negotiations over the EU's decision to significantly increase tariffs on Chinese-made electric vehicles.

Elaine Kurtenbach reports for The Associated Press.

In short:

• The EU plans to impose provisional tariffs of 17.4% to 38.1% on Chinese-made EVs starting July 4, citing unfair subsidies that harm EU automakers.
• Both China and Germany's economy minister expressed willingness to hold discussions to resolve the dispute before the tariffs take effect.
• China is also investigating European pork imports, which may be a response to the EU's EV tariff measures.

Key quote:

“The doors are open for discussions. And I hope that this message was heard.”

— Robert Habeck, Germany’s economy minister and vice chancellor

Why this matters:

Increased tariffs could escalate trade tensions between China and the EU, impacting global trade and the electric vehicle market. An agreement could help avoid further economic conflict and support fair competition in the automotive industry.