European Union and China looking to set minimum prices for China-made EVs instead of charging tariffs

European Union and China looking to set minimum prices for China-made EVs instead of charging tariffs

According to a report by Reuters, the European Union (EU) and China have agreed to look into setting minimum prices for Chinese-made electric vehicles (EVs) instead of tariffs. Last October, the EU increased tariffs on EVs built in China and imported into the bloc by as much as 45.3%, up from the previous 38.1% proposed in June 2024 – the rates vary from brand to brand.

Citing Handelsblatt, the news outlet reports EU trade commissioner Maros Sefcovic spoke with Chinese commerce minister Wang Wentao in the and revealed both sides are in discussions to set minimum prices, also known as price undertakings for imported cars.

German automotive industry association VDA welcomed the talks between the EU and China, calling the duties a “mistake” and advocating for a negotiated solution. “Regardless of current global developments, it must also be discussed here how to reduce obstacles and distortions in international trade, rather than building new hurdles,” VDA said on Thursday (April 10, 2025).

The timing and willingness of the EU to discuss alternatives to tariffs could be a result of the United States’ tariffs that have resulted in increased global trade tensions. A potential price floor rather than percentage-based tariffs could be beneficial to Chinese automakers for their European operations, as it allows them to adjust their business models and build presence in an important market.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard's strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Najib on Apr 11, 2025 at 1:12 pm

    Haaa..scare already…caina numba 1!

    Like or Dislike: Thumb up 9 Thumb down 1
  • Raja Kamarul on Apr 11, 2025 at 1:39 pm

    Malaysia: Leading the way in protecting local industry

    Like or Dislike: Thumb up 8 Thumb down 2
    • Lol Whut? on Apr 11, 2025 at 2:55 pm

      Looks like Msia wasn’t wrong after all when the world is learning from us!

      Like or Dislike: Thumb up 2 Thumb down 0
  • Henry on Apr 11, 2025 at 2:12 pm

    Malaysia has been doing it for so long i.e. all new car selling price must be approved by the Government. So,car distributors can’t sell cheap even if they want to.

    If all these China made cars are allowed free pricing I’m sure it can be much cheaper. So, they entice by giving freebies, cash discount, free service and long warranties.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ex VGM staff on Apr 11, 2025 at 2:43 pm

    Malaysian also doing the same. Min 100k floor price for new EV sales, though companies like Neta shows the loophole openly – 20k discounts even before you step the showroom.

    Donald Trump is clearly a clown. He and Boris Johnson.

    Like or Dislike: Thumb up 1 Thumb down 0
  • no country ever wins when dealing or trading with china. china always have the best terms in negotiations, that’s before they even flood the world with cheap goods

    Like or Dislike: Thumb up 0 Thumb down 0
  • sudirman on Apr 14, 2025 at 9:31 am

    Malaysia has already done it before. Now, the EU learn it from us. Making friends with the US is not reliable now. ;)

    Like or Dislike: Thumb up 0 Thumb down 0
 

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