The European Union and China are engaging in discussions to introduce minimum prices for Chinese-manufactured electric vehicles, as reported by Reuters.
European Union officials and Chinese representatives have reached an agreement to explore the introduction of minimum pricing for electric vehicle imports from China. The approach aims to replace the EU tariffs imposed last year.
An EU spokesperson stated on Thursday that Trade Commissioner Maros Sefcovic has held discussions with Chinese Commerce Minister Wang Wentao within the past 24 hours. During the talks, both sides agreed to examine the possibility of setting minimum prices.
In October 2021, the European Union increased tariffs on electric vehicle imports from China to as high as 45.3% while maintaining the general car import tariff at 10%. Currently, Brussels and Beijing are exploring the possibility of replacing these tariffs with minimum price guarantees for imported vehicles, referred to as price undertakings for imported cars. The EU’s tariffs against Chinese automakers were set at 17.0% for BYD vehicles, 18.8% for Geely vehicles, and 35.3% for SAIC vehicles.
The ongoing negotiations appear to be influenced by Donald Trump’s recent trade policies. His decision to suspend reciprocal tariffs for three months, excluding China, and additional tariffs on Chinese goods has likely spurred the situation.
According to customs data, over 50,000 battery electric vehicles (BEVs) were exported from China to the EU during January and February 2025. Plug-in hybrid cars, exempt from EU tariffs, experienced a remarkable surge of 892%, reaching 25,900 units during the same timeframe. In 2023, Chinese brands like BYD captured 8% of the EU BEV market; however, its growth has decelerated following the EU tariffs introduced in 2024.
The establishment of a price floor, instead of tariffs based on percentage rates, could offer Chinese automakers greater stability and clarity in managing operations within the European market.
The German auto industry association, VDA, expressed support for the ongoing discussions, describing the current tariffs as a misstep and seeking a resolution through negotiations. The VDA highlighted the importance of minimizing barriers and distortions in global trade.
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