Global Economy News

China retaliates after EU tariffs increase

According to Tasnim news agency, citing Rashatoudi, the Chinese government announced the next stage of its investigation into the import of some goods from the European Union in retaliation after the European Union imposed temporary tariffs on the country's electric vehicle imports.

The European Union on Thursday imposed tariffs of 17.4 percent to 37.6 percent on imports of Chinese electric vehicles, on top of existing 10 percent duties on the goods, citing its investigation into Beijing's “unfair subsidies” to auto manufacturers.

In response, China's Ministry of Commerce announced on Friday that it will hold a hearing on July 18 to look into allegations that some EU producers are selling their goods in China below market rates, according to the report.

The European Union imposed a steep tariff hike on July 5 to stem the flood of cheap Chinese electric cars and protect its manufacturers.

Temporary additional tariffs of up to 38% will apply from July 5 for a maximum period of four months, according to a press release from the European Commission published on Thursday.

The decision comes nine months after European Commission President Ursula von der Leyen announced an investigation into a flood of cheap Chinese cars entering the bloc.

Based on the investigation, the European Commission concluded that China's all-electric vehicles benefit from an “unfair subsidy”, which poses a “threat of economic injury” to EU carmakers.

The definitive and final decision on these tariffs is expected to be announced by November, while negotiations between Brussels and Beijing will continue to resolve this issue.

The European Union is the largest overseas market for Chinese electric vehicle manufacturers.

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Mhd Narayan

Bringing over 8 years of expertise in digital marketing, I serve as a news editor dedicated to delivering compelling and informative content. As a seasoned content creator, my goal is to produce engaging news articles that resonate with diverse audiences.

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