EU and China intensify efforts to avoid Electric Vehicle tariffs

The European Commission said on Thursday that it is stepping up its activities with China to prevent the introduction of import tariffs on EVs made in China. This comes after a meeting between EU Trade Chief Valdis Dombrovskis and China’s Commerce Minister Wang Wentao in the backdrop of the EU member votes on potential tariffs of up to 35.3%, apart from the current 10% ad valorem duty on cars imported from foreign countries.

Disingenuously, during their ‘open-and-shut’ talks, Dombrovskis stressed that the EU’s anti-subsidy investigation is objective, and its main goal is to restore equity within the market. A representative of the Commission pointed out that two organisations also declared their intention to achieve a satisfactory resolution that would be practical, legal, and WTO compatible.

The talks also addressed minimum price undertakings, which are agreements from exporters on price floors and caps on quantities. While the EU had previously signaled that the deadline for Chinese EVP has passed, the restarting of negotiations mean that there is a renewed interest in this option.

Dombrovskis stressed that the EU investigation would go on, thus stressing the EU’s concern with possible market distortions. He murmured about China trade probe into EU’s importation of brandy, pork, and dairy products which was a precaution for tariffs based on ‘doubtful allegations.’

While both countries try to mitigate these complex trade concerns, the global EV industry stands to be impacted as it continues to grow. The outcome of these discussions will influence trade relations and the dynamics of selling and producing electric vehicles in both the EU and China. EU strategy is a crucial component of the response to the increased competition in the expanding global automobile industry.