The European Union and China are reportedly approaching a resolution on tariffs for Chinese electric vehicle (EV) imports, according to Bernd Lange, chair of the European Parliament’s trade committee. Speaking to German broadcaster n-tv, Lange indicated that China might agree to set a minimum price for EVs sold within the EU, though details remain unclear.
“We are close to an agreement: China could commit to offering e-cars in the EU at a minimum price,” Lange stated. “This would eliminate the distortion of competition through unfair subsidies, which is why the tariffs were originally introduced.”
The EU imposed tariffs of up to 45.3% on Chinese-made EVs effective Oct. 30, following a high-profile investigation into what it described as unfair subsidies. These include favorable financing terms, grants, and access to land, batteries, and raw materials at below-market prices. The decision, aimed at leveling the competitive playing field, has sparked division within Europe and led to backlash from Beijing.
China’s Chamber of Commerce to the EU previously condemned the tariffs as “protectionist” and “arbitrary.” Despite the trade tensions, ongoing negotiations between Brussels and Beijing have raised hopes that a compromise might avert a deeper trade dispute, particularly among German carmakers reliant on Chinese markets.
Lange’s comments reflect optimism that the proposed minimum price agreement could address concerns about market distortion while maintaining access to Chinese EVs. However, details of the potential deal, including enforcement mechanisms, remain to be finalized.
