Europe could lift tariffs on Chinese EVs in favour of fixed minimum prices

Dippy · 11th April 2025, 10:55

The European Union and China are agreeing to set minimum prices for Chinese-made electric vehicles instead of tariffs imposed by the EU last year. German newspaper Handelsblatt reported earlier on Thursday that negotiations had begun.

It is reported that EU trade commissioner Maros Sefcovic spoke with Chinese Commerce Minister Wang Wentao in the last 24 hours, and both sides agreed to look into setting minimum prices, an EU spokesperson said.

The EU increased tariffs on Chinese-built EVs to as much as 45.3% last October. The European Commission has said it is willing to continue negotiating an alternative to tariffs with China. Currently, the tariffs stand at 17.0% for vehicles made by BYD, 18.8% for Geely and 35.3% for SAIC, on top of the EU's standard car import duty of 10%.

These developments are coming in the wake of U.S. President Donald Trump’s new tariff war, which has had a big impact on automakers worldwide. These include Europe and China, which are the United States’ closest trading partners.

German auto industry association VDA welcomed the talks between the EU and China, calling the duties a "mistake" and advocating for a negotiated solution. "Regardless of current global developments, it must also be discussed here how to reduce obstacles and distortions in international trade, rather than building new hurdles," VDA said on Thursday.

German carmakers, which made a third of their sales last year in China, opposed the tariffs, worried about a trade conflict with the country's second most important trading partner after the U.S.

The deal between the EU and China could also cast a big blow to Tesla. The carmaker has seen a major decline in sales in Europe in recent times, despite being a dominant player in the market. If Chinese electric vehicles start bringing in the numbers after the deal, it would easily be a death blow to Tesla on the continent.

Source: Reuters

Link to Team BHP news

PreludeSH · 11th April 2025, 11:53

Hope this is start of EU trying to have policies independent of US. Trump has damaged US influence in the long run. Countries will work towards what is best without being affected by US's own selfish interests - both ego and business wise.

Wish China could stop its expansionist attitudes and work with India for economic partnership.

drift87 · 11th April 2025, 12:43

Finally good to see an influential region like EU taking its own independent stand rather than being hand in glove with the US. IMO, this will further open up more opportunities and facilitate Global Trading. this is going to be big for BYD!

11th April 2025, 10:55	#1
Dippy Senior - BHPian Join Date: Feb 2004 Location: Mumbai, India Posts: 7,792 Thanked: 4,461 Times	Europe could lift tariffs on Chinese EVs in favour of fixed minimum prices The European Union and China are agreeing to set minimum prices for Chinese-made electric vehicles instead of tariffs imposed by the EU last year. German newspaper Handelsblatt reported earlier on Thursday that negotiations had begun. It is reported that EU trade commissioner Maros Sefcovic spoke with Chinese Commerce Minister Wang Wentao in the last 24 hours, and both sides agreed to look into setting minimum prices, an EU spokesperson said. The EU increased tariffs on Chinese-built EVs to as much as 45.3% last October. The European Commission has said it is willing to continue negotiating an alternative to tariffs with China. Currently, the tariffs stand at 17.0% for vehicles made by BYD, 18.8% for Geely and 35.3% for SAIC, on top of the EU's standard car import duty of 10%. These developments are coming in the wake of U.S. President Donald Trump’s new tariff war, which has had a big impact on automakers worldwide. These include Europe and China, which are the United States’ closest trading partners. German auto industry association VDA welcomed the talks between the EU and China, calling the duties a "mistake" and advocating for a negotiated solution. "Regardless of current global developments, it must also be discussed here how to reduce obstacles and distortions in international trade, rather than building new hurdles," VDA said on Thursday. German carmakers, which made a third of their sales last year in China, opposed the tariffs, worried about a trade conflict with the country's second most important trading partner after the U.S. The deal between the EU and China could also cast a big blow to Tesla. The carmaker has seen a major decline in sales in Europe in recent times, despite being a dominant player in the market. If Chinese electric vehicles start bringing in the numbers after the deal, it would easily be a death blow to Tesla on the continent. Source: Reuters Link to Team BHP news Last edited by Dippy : 11th April 2025 at 11:01.
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11th April 2025, 11:53	#2
PreludeSH Senior - BHPian Join Date: Oct 2021 Location: Bengaluru Posts: 1,008 Thanked: 2,278 Times	Re: Europe could lift tariffs on Chinese EVs in favour of fixed minimum prices Hope this is start of EU trying to have policies independent of US. Trump has damaged US influence in the long run. Countries will work towards what is best without being affected by US's own selfish interests - both ego and business wise. Wish China could stop its expansionist attitudes and work with India for economic partnership. Last edited by PreludeSH : 11th April 2025 at 11:55.
	(3) Thanks

11th April 2025, 12:43	#3
drift87 BHPian Join Date: Oct 2020 Location: Bengaluru Posts: 77 Thanked: 168 Times	Re: Europe could lift tariffs on Chinese EVs in favour of fixed minimum prices Finally good to see an influential region like EU taking its own independent stand rather than being hand in glove with the US. IMO, this will further open up more opportunities and facilitate Global Trading. this is going to be big for BYD!
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