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.
[Compliance Note]
All posts by Sellsmart are for informational purposes only. Final investment decisions should be made with careful judgment and at the investor’s own risk.
The content of this post may be inaccurate, and any profits or losses resulting from trades are solely the responsibility of the investor.
Core16 may hold positions in the stocks mentioned in this post and may buy or sell them at any time.
