EU Revises Tariff Policy‍ on‌ Chinese ⁢Electric Vehicles Amid Ongoing Negotiations

The European Union (EU) is⁢ reviewing its tariff policy on Chinese ⁤electric vehicles, with plans to revise the draft tariff that raises the current 10% to 27.0-46.3%.

According‌ to Reuters, the European Commission (EC) announced the⁣ revision after a meeting between EU Deputy Trade Commissioner⁢ Valdiv Dombsrowskis and⁤ Chinese Commerce Minister Wang Wentao ⁣in Brussels, Belgium.

China’s Ministry of Commerce stated​ that the⁢ two sides have engaged in comprehensive, in-depth, and constructive negotiations on the proposed ⁤electric vehicle ⁢tariffs. They have⁣ made clear their intention to resolve their differences through negotiations and agreed to continue negotiations‌ on price ⁤agreements to find a ‌solution acceptable to both sides.

If the price agreement is⁢ pushed forward, Chinese electric vehicle manufacturers will have a ​sales​ floor⁣ set​ when exporting to Europe.⁣ This marks a reversal ‍of ⁣the EU’s position, which publicly rejected China’s price agreement earlier this month.

In June, the EU ​announced a draft of a definitive countervailing duty that would raise tariffs on Chinese electric ‍vehicles from the current 10% ‌to⁤ 27.0-46.3% over the next ​five years. The⁤ draft is set ⁤to be implemented⁢ from August ⁣1 and will be finalized through a vote on ‌the 25th.

However, ⁤the plan may be derailed as the EU’s largest economies, Germany and Spain, have expressed⁢ opposition to‍ the‌ EU’s tariff policy. ⁢These countries⁢ have cited China’s trade retaliation as a reason for their opposition, and the EU Commission is reviewing the situation in‍ consideration of this.