EU to replace tariffs on Chinese EV with minimum trade agreement: Reuters

In a fresh set of talks to resolve trade tensions with China, the European Union (EU) might replace the EU’s existing tariffs on Chinese electric vehicles with a minimum price system, Reuters reported. 

According to China’s Ministry of Commerce, the discussions will soon get its initiation. 

In addition to usual import charges, the EU imposed higher tariffs on Chinese-built EVs in October 2024, raising them by 17.3% for BYD vehicles and 35.3% for SAIC models.

As per the report, the current tariff system may get superseded with a minimum price agreement

The update came amid the increased trade tensions around the world, as US President Donald Trump has imposed high tariffs globally, including 20% on EU goods and 125% on Chinese imports. Earlier, on April 9, the US announced to halt these US tariffs for 90 days.

Citing Hildegard Müller, President of German automotive association VDA, Reuters reported, “the tariffs represent the US's departure from the rules-based global trading order- and thus a departure from the foundation for global value creation and corresponding growth and prosperity in many regions of the world. The announced measures also represent a massive burden and challenge for both companies and the global supply chains of the automotive industry.”