EU and China Close to Tariff Deal on Electric Vehicles Amid Trade Tensions

November 22, 2024
EU and China Close to Tariff Deal on Electric Vehicles Amid Trade Tensions
  • Despite 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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