China and the European Union (EU) have agreed to negotiate on proposed tariffs on Chinese electric vehicles (EVs) amid ongoing tensions. 

EU Officials Talk to China About EV Tariffs

According to BBC, top officials from both sides held a call on Saturday, marking the first negotiation since the EU proposed tariffs of up to 38% on Chinese EVs unfairly subsidized by its government.

China responded by accusing the EU of protectionism and breaching trade rules. An EU spokesperson described the call between Trade Commissioner Valdis Dombrovskis and his Chinese counterpart Wang Wentao as candid and constructive. 

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China Threatens to Take it to WTO

The spokesperson told BBC that any resolution must address the subsidies that the EU claims are harmful. China reiterated its opposition and threatened to take the matter to the World Trade Organization (WTO).

The proposed tariffs would range from 17.4% to 38.1%, in addition to the existing 10% tariff on Chinese EVs. This move follows the US' decision to increase its tariff on Chinese EVs from 25% to 100%. 

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