China is pressing the European Union to withdraw its preliminary tariffs on Chinese electric vehicles (EVs) by July 4, as reported by the state-controlled Global Times. This move comes after both parties agreed to engage in new trade talks.

The EU’s temporary tariffs, which may rise to 38.1% on imported Chinese EVs, are slated to begin on July 4 amid allegations that China provides excessive and unfair subsidies to its EV manufacturers. Beijing has consistently requested that the EU cancel these tariffs, expressing a preference for negotiation to avoid a repeat of the tariff disputes seen with the U.S. under the Trump administration. Nonetheless, China has pledged to defend its companies if necessary.

The agreement to start tariff discussions was reached following a conversation between EU Commissioner Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao. This call took place during a visit to China by Germany’s economy minister, who noted that the opportunity for dialogue remains available.

According to Global Times, the best outcome of these negotiations would be the EU’s cancellation of the tariff decision before the July 4 deadline. The publication cautioned that the EU’s protectionist actions might lead to retaliatory measures from China, resulting in mutual economic harm.

The final decision on the tariffs will be made on November 2, at the conclusion of the EU’s anti-subsidy investigation. China has refuted the claims of unfair subsidies, arguing that its EV industry’s growth is driven by its technological, market, and supply chain strengths.