Overview

• EU and China are struggling to reach a consensus on electric vehicle tariffs, with discussions stalling after eight rounds of talks.
• China has threatened retaliatory tariffs on large-engine vehicles and cognac, targeting major EU economies like Germany and France.
• The EU is considering a mechanism to control prices and export volumes as an alternative to the proposed tariffs.
• Chinese officials have returned to Beijing, reflecting the significant gap in negotiations despite ongoing background discussions.
• EU officials find it difficult to finalize a deal by the end of October due to the complexity of the issues involved.