BERLIN (Reuters) -The European Union and China have agreed to look into setting minimal costs on Chinese language-made electrical autos as an alternative of tariffs imposed by the EU final 12 months, a European Fee spokesperson mentioned on Thursday.
German newspaper Handelsblatt reported earlier on Thursday that negotiations had begun.
EU commerce commissioner Maros Sefcovic spoke with China’s commerce minister Wang Wentao within the final 24 hours and each side agreed to look into setting minimal costs, the EU spokesperson mentioned.
China’s commerce ministry mentioned in a press release that negotiations have been set to begin “instantly.”
Sefcovic has beforehand mentioned any minimal costs would have to be as efficient and enforceable because the EU tariffs.
The EU elevated tariffs on Chinese language-built EVs to as a lot as 45.3% final October, however Brussels and Beijing have floated the concept of lifting the tariffs via potential commitments to minimal costs, often known as worth undertakings for imported automobiles.
The European Fee has mentioned it’s prepared to proceed negotiating a substitute for tariffs with China, which included tariffs of 17.0% for autos made by BYD, 18.8% for Geely and 35.3% for SAIC, on high of the EU’s customary automotive import responsibility of 10%.
The discussions to doubtlessly discover a truce over the longstanding spat which has additionally roiled French cognac makers as Beijing took retaliatory commerce motion, comes as US President Donald Trump has launched into a commerce warfare with a few of the U.S.’ closest buying and selling companions, together with the EU and China.
Beijing slapped punitive tariffs on French cognac final 12 months, hurting gross sales on this planet’s No. 2 economic system and a serious brandy marketplace for world corporations together with Hennessey, Remy Cointreau and Pernod.
(Reporting by Philip Blenkinsop and Maria MartinezEditing by David Goodman and Susan Fenton)
