The EU and China Are in Talks to Replace Tariffs on Electric Cars With Minimum Prices
Chinese electric vehicles. X/ @LWorldsite
April 11, 2025 Hour: 8:20 am
In October 2024, tariffs of up to 35.3% on electric vehicle imports from China came into effect in the European Union.
The European Commission (EC) and China will continue “dialoguing” to reach minimum price commitments on Chinese electric vehicles imported by the European Union (EU) as an “alternative” to the tariffs imposed by the bloc on battery-powered cars from the Asian giant due to illegal subsidies.
RELATED:
The EU and China To Hold a Summit in July
European Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao agreed to continue these talks during a phone call last Tuesday.
“They agreed to continue discussions on price undertakings as a possible alternative to the EU’s anti-subsidy duties on battery electric vehicles originating from China,” said European Commission trade spokesperson Olof Gill, who clarified that such an option would require “ensuring a level playing field and that China effectively addresses the issue of unfair subsidies through enforceable and verifiable commitments.”
In October 2024, tariffs of up to 35.3% on electric vehicle imports from China came into effect in the EU, as approved by the European Commission. The Commission imposed duties of 35.3% on Chinese manufacturer SAIC (which owns MG and Maxus, among other brands), 18.8% on Geely, and 17% on BYD, for a maximum duration of five years.
China responded with provisional tariffs on brandy after threatening investigations into imports of dairy products and pork from the EU. At the end of March, Brussels and Beijing agreed to negotiate an alternative, a process that remains ongoing amid a potential rapprochement between the Asian giant and the EU, spurred by the return of Donald Trump to the White House and his renewed trade war.
During the call between the European Commissioner and the Chinese Minister, the two leaders discussed “a broad range of trade and economic issues between the EU and China, including overcapacity, level playing field competition, and fair market access for European companies in China,” the spokesperson added.
In mid-July, the EU and China will hold a bilateral summit that was initially scheduled to take place in Brussels but will now be held in Beijing for logistical reasons. The Commission did not comment on whether the venue change was due to Chinese President Xi Jinping’s unwillingness to travel to the EU capital, reportedly opting to send Premier Li Qiang instead.
This week, European Commission President Ursula von der Leyen asked Li not to escalate the trade war with the United States and conveyed that the European Union and China share the “responsibility” of supporting “a strong global trading system.”
teleSUR/ JF
Source: EFE
