Will the EU and China form a united front against Trump’s tariff offensive?

With China-EU talks on electric vehicle tariffs at a standstill, analysts ponder the likelihood of an uneasy alliance in second Trump term

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Negotiations over European tariffs on Chinese electric vehicles continue as analysts wonder what the talks mean for the broader EU-China trade relationship. Photo: Getty Images

Published: 4:00pm, 29 Nov 2024Updated: 4:45pm, 29 Nov 2024

As mixed signals emanate from negotiations between China and the European Union over tariffs on electric vehicles (EVs), experts said the talks and their outcome will be useful for determining the state of trade relations during the fast-approaching second term of US president-elect Donald Trump.

In a report over the weekend, German broadcaster N-TV cited remarks by the chair of the European Parliament’s trade committee saying an agreement was near. But both Bloomberg and Reuters cited sources this week saying “not much has changed” since Nov 2, when EU officials arrived in Beijing for “technical talks”.

With no official announcements on progress from either side, observers are paying close attention to any developments from the negotiations, eager for a sign of how the two will manage their economic relationship in what is likely to be a more fraught trade environment.

“I am not too optimistic [on China-EU trade relations], but I am at least more optimistic than before Trump was elected,” said He Weiwen, former commercial counsellor at the Chinese consulates in New York and San Francisco.

“The objective need for each other’s markets [should] increase under Trump, as we expect a more protectionist and unilateral approach from the US in dealing with trade.”

Trump, already having vowed to hike tariffs by 60 to 100 per cent on Chinese goods at various stops on the campaign trail, announced he would impose a 10 per cent duty immediately upon taking office via executive order. He also revealed his plans to tax Canadian and Mexican goods by 25 per cent.