The European Union and China negotiate the end of tariffs on electric vehicles amid competition for the automotive market

European Union and China negotiate end of tariffs on EVs amid automotive market dispute (X @BYDGlobal)

The European Union and China are in negotiations to remove tariffs on Chinese electric vehicles imposed in 2024.

Instead, the EU is considering adopting a model based on minimum prices for imported vehicles, a strategy already used for other products, but which would be unprecedented in the automotive sector. The shift comes amid global trade tensions, especially following the tariff increases implemented by the United States.

The EU’s original decision came after an investigation into state subsidies provided by China to its electric vehicle manufacturers, which, according to the European bloc, created unfair competition. As a result, tariffs of up to 36.3% were imposed on vehicles from automakers such as BYD, Geely, SAIC, and even Tesla, which manufactures some of its models in China. Some European countries, such as France and Italy, supported the measure, while others, such as Germany and Spain, were more hesitant or neutral.

The European Union’s main motivation is to protect its automotive industry in the face of the growing presence of Chinese electric vehicles in the European market. European Commission President Ursula von der Leyen emphasized the importance of ensuring a fair market to preserve jobs and local communities.

At the same time, discussions with China aim to find an alternative solution compatible with WTO rules that is effective in controlling subsidies and practically applicable.

Source: Car Magazine | Photo: X @BYDGlobal | This content was created with the help of AI and reviewed by the editorial team