EU and China agreed to eliminate EV tariffs
EU to withdraw up to 45.3% countervailing duties on Chinese EVs
Both parties will resume negotiations on a price floor mechanism
A top-level EU–China summit is expected in July
Opinion
By opting for price regulation over protectionist tariffs, the EU and China appear to be forging a more independent trade alliance, diverging from the U.S.'s hardline approach.
Amid ongoing global supply chain realignments, this signals a strategic recalibration in their bilateral economic relations.
Core Sell Point
As pressure builds to regulate China’s low-cost EV strategy, new pricing restrictions could impact profitability and pricing flexibility for key players in the industry—posing mid-term risks to margins and competitive dynamics.
The European Union (EU) and China have agreed to eliminate tariffs on Chinese electric vehicles (EVs) and reopen negotiations on a minimum price agreement. This decision comes amid shifting dynamics in the global trade landscape following U.S. tariff escalations against China, and marks a potential de-escalation in EU–China trade tensions.
Since 2023, the EU had imposed countervailing duties of up to 45.3% on Chinese EV imports. However, in recent discussions between EU Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao, both sides agreed to remove the duties and immediately restart talks on a conditional price floor, under which Chinese EVs would not be sold below an agreed threshold. A high-level EU–China summit is scheduled for July.
Unlike the U.S.'s confrontational trade posture, this move is seen as a cooperative attempt by the EU and China to resolve disputes bilaterally—a sign that new economic partnerships excluding the U.S. may be taking shape.
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