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.