Jun 10, 2025

China announces that discussions regarding EV tariffs with the EU are in the final phase.


China's commerce ministry announced that negotiations with the European Union regarding minimum pricing for Chinese electric vehicles have reached the final stages, though additional work is needed to finalize an agreement.

The discussions follow the EU's imposition of high tariffs on Chinese EV imports last year, claiming that state subsidies provided an unfair advantage to these vehicles.

Since then, sales of Chinese EVs in Europe have significantly decreased. Some Chinese brands are shifting their focus to plug-in hybrids, which are exempt from the tariffs, while companies like BYD and Chery are establishing production facilities in Europe.

Progress in negotiations was made when China’s commerce minister, Wang Wentao, met with EU Trade Commissioner Maros Sefcovic in France earlier this month, as stated by the Chinese ministry on June 7.

Both parties have tasked their working groups to increase efforts to address trade disputes in line with national laws and World Trade Organization regulations.

Meanwhile, China has agreed to expedite approvals for eligible rare earth exporters to Europe and expressed hope that the EU will enhance and promote high-tech exports to China.