China is going tit for tat on tariffs. Good morning. This is a marketplace morning report and we're live from the BBC World Service. I'm Leanna Byrne.

And thank you so much for tuning in. Chinese carmakers are urging Beijing to slap import taxes of up to 25% in European cars,

specifically on high-end gasoline cars from the continent. It follows the European Union's confirmation that from July 4th

it will put tariffs up to 38% on electric vehicle imports from China. The BBC's Pierre Antoine

Denny has been following this for us. Hello.

Hello, hello. I'm presuming this is another one in retaliation to the EU's tariffs on

Chinese electric vehicles?

Yes, it is.

They really didn't like the conclusion of that EU investigation

from the European Commission

and those tariffs of up to 38%. They also want to show that they have ways to put problems

to the European carmakers. We've been hearing from Chinese state media about this closed door meeting involving some Chinese carmakers as well as some European carmakers to establish the retaliation and the weight of it.

If the trading block in Brussels imposes their tariffs on vehicles from China,

you have to remember that these tariffs are still just a proposal,

they have until the 4th of July to find an agreement on this

tariffs from the EU towards Chinese electric vehicles of up to 38%.

So of course many carmakers are really at negotiating tables right now,

hoping for a deal.

But if that doesn't happen, then China, shown today that they have their way of coming back at Brussels.

That's not the only way, right? I think they were talking about pork earlier on in the week, too?

Yes, exactly.

Pork was also threatened, putting tariffs on the imports of European pork products which created strong

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