China and EU discuss trade in response to US’ punitive tariffs

The conversation came shortly before US President Donald Trump’s additional tariffs on China started taking effect.

On Wednesday, Trump said he would temporarily lower the hefty duties he had just imposed on dozens of countries in a stunning reversal. However, he ramped up pressure on China, threatening to raise tariffs on the world’s second-largest economy to 125%.

China is ready to deepen trade, investment, and industrial cooperation with the European Union, Wang told Sefcovic. Wang urged China and the EU to jointly safeguard the rules-based multilateral trading system and adhere to trade liberalisation and facilitation, “which will inject more stability and certainty into the world economy and global trade”, according to the ministry’s statement.

China and the EU also discussed creating a more favourable business environment for enterprises and handling trade transfer issues.

They will continue to strengthen communication under the World Trade Organization (WTO) framework and jointly promote WTO reform, the statement added.

The EU had imposed additional tariffs of up to 35.3% on China-made electric vehicles at the end of October after an anti-subsidy investigation, on top of the bloc’s standard 10% car import tariffs.

The commerce ministry said last week that both sides have agreed to restart negotiations on minimum price commitments on Chinese EVs but did not specify when those talks would resume.