EU and China Near Agreement on EV Tariffs

Brussels and Beijing are nearing an agreement to abolish tariffs on the import of Chinese electric vehicles into the European Union, according to Bernd Lange, chair of the European Parliament's trade committee. The proposed agreement could involve China committing to offer electric cars at a minimum price in the EU, which would address concerns over competition distortions caused by unfair subsidies. This development follows the EU's recent decision to raise tariffs on Chinese-built electric vehicles to as high as 45.3%, a move that has been met with disappointment from China's Chamber of Commerce and fueled ongoing negotiations. The tariffs were introduced to counter perceived unfair subsidies provided by China, including favorable financing and land access. Despite the tariffs taking effect on October 30, both sides are optimistic about reaching a resolution, particularly German automakers who rely heavily on the Chinese market for sales.