EU and China Close to Tariff Deal on Electric Vehicles Amid Trade Tensions
November 22, 2024Despite the ongoing tariffs, negotiations between the EU and China are still active, with German car manufacturers particularly eager for a resolution due to their dependence on the Chinese market.
The European Commission has not provided immediate comments regarding the ongoing negotiations.
The tariff decision has led to divisions within Europe and prompted retaliatory actions from Beijing, escalating the trade dispute.
Brussels and Beijing are nearing an agreement on tariffs concerning Chinese electric vehicles (EVs) imported into the EU, as indicated by Bernd Lange, chair of the European Parliament's trade committee.
Lange mentioned that China might agree to offer electric cars in the EU at a minimum price to mitigate competition distortions caused by unfair subsidies.
In October 2023, the EU raised tariffs on Chinese-built electric vehicles to as high as 45.3%, initiating a significant trade investigation.
These tariffs were introduced in response to perceived unfair subsidies from China, including below-market pricing on financing, land, batteries, and raw materials.
China's Chamber of Commerce to the EU expressed disappointment over the tariffs, criticizing them as 'protectionist' and 'arbitrary'.
Summary based on 2 sources
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Sources
Yahoo Finance • Nov 22, 2024
EU, China close to agreement over EV import tariffs, leading MEP saysInvesting.com • Nov 22, 2024
EU, China close to agreement over EV import tariffs, leading MEP says