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EU, China ‘close to deal’ over EV import tariffs

In October, the EU decided to raise tariffs on Chinese-built EVs to as much as 45.3% following a high-profile investigation. The move has divided EU countries and sparked retaliation from Beijing.

EU and Beijing are closing in on a deal over tariffs on Chinese electric vehicle imports into the bloc, according to the chair of the trade committee of the European Parliament. 

“We are close to an agreement: China could commit to offering e-cars in the EU at a minimum price,” Bernd Lange told German broadcaster n-tv, according to Reuters. “This would eliminate the distortion of competition through unfair subsidies, which is why the tariffs were originally introduced.”

In October, the EU decided to raise tariffs on Chinese-built EVs to as much as 45.3% following a high-profile investigation.

The move has divided EU countries and sparked retaliation from Beijing. 

While 10 EU members including France and Italy supported tariffs in a vote in October, five including Germany opposed them and 12 abstained.

China has told its carmakers to pause major investment in European countries that backed the additional tariffs, according to media reports. 

The tariffs were imposed to counter what EU claims are unfair subsidies such as preferential financing and grants along with land, batteries and raw materials at below market prices.

EU’s auto sector is facing multiple headwinds, such as high production costs, the painful transition to EVs, and stiff competition from lower-cost Chinese EVs. 

Volkswagen, Europe’s biggest carmaker, recently announced plans to shut a few of its factories in Germany. Ford announced this month that it is reducing its workforce by 4,000 in Europe and the UK by the end of 2027. 

Europe accounted for over 40% of EVs shipped from China in 2023. 

A few weeks ago, China reportedly asked France to take on “an active role” to push the European Commission toward a solution acceptable to both the European and Chinese EV sectors. 


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