China hits back at EU tariff hike on electric vehicles

Now that Europe has announced tariffs on China-made electric cars, the continent is bracing to see if the other shoe drops.

Transcript

00:00 Chinese government officials have blasted the EU over proposed tariff hikes on electric

00:07 vehicles. The European Commission announced it would increase import duties from 10 percent

00:14 to as much as 38 percent for Chinese automakers. Chinese ministry spokespeople have labeled

00:20 it the wrong decision that could lead to a trade war.

00:24 "The tariff hike will not only damage the legitimate rights of China's electric vehicle

00:31 industry, disrupt the cooperation between China and Europe, and distort the global vehicle

00:38 and industrial chain supply chain, including those of the EU. The EU's approach is suspected

00:45 of violating trade organization rules and is a blatant trade protectionist behavior."

00:52 Beijing has vowed to react to the additional duties, which has made European producers

00:58 of cognac, pork and perfume nervous.

01:20 Electric cars are the latest flashpoint in a broader dispute between the EU and China.

01:25 Brussels claims Beijing's state support for green tech undercuts EU cars on price. These

01:32 new duties, expected to be rolled out next month, are aimed at leveling the playing field.

01:38 [SWOOSH]