Opening in EU's looming trade war with China

In the face of a looming trade war, China and the EU have agreed to initiate talks on the EU's proposed punitive tariffs on the import of electric cars.

» Updated: July 16 2024

» Published: June 22 2024

Opening in EU's looming trade war with China
Photo: Andres Martinez Casares/AP/TT

Share this article

Prior to a looming trade war, China and the EU have agreed to initiate talks on the EU's proposed punitive tariffs on the import of electric cars.

The EU Commission warned nearly two weeks ago that punitive tariffs of up to 38 per cent on Chinese electric cars could become a reality.

The tariffs could come into effect in July, but Germany protested and warned of a trade war and market isolation. The country's Economy Minister Robert Habeck is now in China, where he has attempted to pour oil on troubled waters.

It appears to have succeeded. China's Commerce Minister Wang Wentao is now set to begin discussions with the EU's Trade Commissioner Valdis Dombrovskis.

We are far from a final goal, but this is at least a first step on a long road, says Habeck in Shanghai to Tagesschau.

The background to the punitive tariffs is that Chinese state subsidies are considered to pose "an economic threat to European electric car battery producers". Habeck said in Shanghai that he does not see the EU's fees as punitive tariffs but as fees intended to level the playing field of competition.

Since the reports of potential punitive tariffs emerged, the automotive industry has warned of more expensive cars, and China flagged last week that it had launched an investigation into the import of pork from the EU – seen as a move in the burgeoning trade war.

China has previously warned that punitive tariffs could be met with counter-measures in the form of tariffs on European agricultural products, aircraft parts, and cars. China has also already launched investigations into whether to impose tariffs on certain types of spirits from Europe.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Swedes Face Higher Costs Due to Norway's Fixed Electricity Prices
2 MIN READ

Swedes Face Higher Costs Due to Norway's Fixed Electricity Prices

Nvidia Stock Drops 2.7% Amid New York Market Decline
1 MIN READ

Nvidia Stock Drops 2.7% Amid New York Market Decline

Trump Criticizes EU's $33.9 Billion Fine on Google, Threatens Trade Probe
2 MIN READ

Trump Criticizes EU's $33.9 Billion Fine on Google, Threatens Trade Probe

US Job Market Slows with Only 22,000 New Jobs in August
2 MIN READ

US Job Market Slows with Only 22,000 New Jobs in August

Tesla Board Proposes New Bonus Plan for Elon Musk
1 MIN READ

Tesla Board Proposes New Bonus Plan for Elon Musk

13 Suspected of Insider Trading After Dawn Raid
1 MIN READ

13 Suspected of Insider Trading After Dawn Raid

18 Charged in Major Insider Trading Case in Sweden and Norway
1 MIN READ

18 Charged in Major Insider Trading Case in Sweden and Norway

Skandiabanken Offers Lowest Mortgage Rates in August
1 MIN READ

Skandiabanken Offers Lowest Mortgage Rates in August

Stockholm Stock Market Rises for Third Consecutive Day
1 MIN READ

Stockholm Stock Market Rises for Third Consecutive Day

Danish Energy Giant Ørsted Lowers Profit Expectations for This Year
1 MIN READ

Danish Energy Giant Ørsted Lowers Profit Expectations for This Year

Foreign Ownership Boosts Swedish Economy with Productivity Growth
1 MIN READ

Foreign Ownership Boosts Swedish Economy with Productivity Growth

Calm Housing Market Spurs Speculator Interest
2 MIN READ

Calm Housing Market Spurs Speculator Interest

Asian Stock Markets Rise Amid US-Japan Tariff Agreement
1 MIN READ

Asian Stock Markets Rise Amid US-Japan Tariff Agreement

USA and Japan Reach New Trade Agreement on 15% Tariffs
1 MIN READ

USA and Japan Reach New Trade Agreement on 15% Tariffs

Activity Toys Pose Serious Injury Risks for Children in EU Survey
1 MIN READ

Activity Toys Pose Serious Injury Risks for Children in EU Survey

Hexagon Sells Software Business for 30 Billion Kronor
1 MIN READ

Hexagon Sells Software Business for 30 Billion Kronor

US Stock Market Sees Broad Gains Amid Labor Market Weakness
1 MIN READ

US Stock Market Sees Broad Gains Amid Labor Market Weakness

Ørsted Sues Trump Administration Over Halted US Wind Project
1 MIN READ

Ørsted Sues Trump Administration Over Halted US Wind Project

US Private Sector Adds 54,000 Jobs in August, Below Expectations
1 MIN READ

US Private Sector Adds 54,000 Jobs in August, Below Expectations

Goldman Sachs: Fed Uncertainty Could Propel Gold Prices
1 MIN READ

Goldman Sachs: Fed Uncertainty Could Propel Gold Prices