German Chancellor Olaf Scholz is hoping that that punitive tariffs the EU has threatened to slap on Chinese electric vehicles can still be prevented in negotiations with Beijing.

Scholz said he had been “firmly promised” that the EU’s talks with Beijing would take place with this goal in mind, and that it was “the right way to go.”

He said the dispute could be resolved by the end of the month if all goes well.

The European Commission, the EU’s executive arm, threatened on Wednesday to impose import tariffs on Chinese electric vehicles of up to 38.1%, after an investigation found evidence of illegal support from subsidies.

The higher import duties will only be applied if the EU and China cannot find a solution to the issue, and would come into force from July 4.

According to the commission, Chinese electric cars are normally around 20% cheaper than models built in the EU.

The German automotive industry has come out against the higher tariffs. It fears that the government in China, a key market, could impose retaliatory duties on electric cars imported from Europe.