Alternatives to the proposed European tariffs on Chinese electric vehicles (EVs), such as establishing minimum sales prices for EVs in Europe, are under consideration by Chinese and European Union officials. EU officials indicated, however, that no deal is in the works.
Unnamed EU sources denied Bernd Lange’s suggestion that an agreement was almost finalized. Lange is the chairman of the European Parliament‘s trade committee. They emphasized that although talks with Beijing are still going on, there are still a number of important issues that need to be addressed.
Setting a minimum price for Chinese-imported electric cars is one of the solutions being considered. After a thorough examination, the EU determined that the price of these automobiles was artificially cheap due to Chinese state subsidies.
In its most high-profile trade probe, the European Union increased tariffs on Chinese-made electric vehicles (EVs) to 45.3% last month in response to subsidies, citing concerns over market distortion and unfair competition. This action caused division in Europe and prompted Beijing to retaliate with countermeasures, further straining trade relations.
At the time, China’s Chamber of Commerce to the EU expressed its deep disappointment with the “protectionist” and “arbitrary” EU action, warning that such measures could disrupt global supply chains, escalate trade tensions, and hinder future economic cooperation between the two regions.