EU and China face crunch time in effort to avoid trade war

The European Union and China are running out of time to defuse a looming trade war. Negotiators from both sides are racing to reach a deal before steep tariffs take effect. At the center of the dispute are electric vehicles. The EU plans to impose heavy import duties on Chinese-made EVs, arguing that Beijing unfairly subsidizes its car industry. China rejects that claim and has threatened to retaliate. A trade war would hurt both economies. The EU is one of China's largest trading partners, and China is a major market for European cars, machinery, and luxury goods. Talks are ongoing, but time is short. If no agreement is reached, the tariffs will proceed, and China is expected to strike back.