European leaders are planning to impose temporary tariffs on electric vehicles from China to protect their own automakers. However, they said on Monday the doors are open for discussions, and they plan to talk sometime this week.
European Commission officials already charge a 10 percent tax on all imported electric vehicles. They announced earlier this month that they would impose additional tariffs on those from China of up to 38.1 percent. They have been investigating state subsidies for the cars and say the help is “unfair.”
The officials said they are looking for an “effective solution” in discussions to be held in Brussels. However, if they are not able to find one, the penalties are set to go into effect early next month.
German Chancellor Olaf Scholz spoked at an event in Berlin and said he needs to see “serious movement and progress” from the Chinese side.
Officials with the Chinese commerce ministry say domestic automakers have done “their best” to cooperate. Still, they believe the European tax rates are “punitive.”
Ministry spokesperson He Yadong said, “The relevant practices by the European side lack a factual and legal basis, disregard WTO rules and undermine fair competition, global green transformation and open cooperation.”
Last month, officials in the Biden administration announced they would quadruple tariffs on EVs made in China to 100 percent. Analysts say Chinese negotiators would need to be willing to make major concessions when they come to the table in Europe.