Written by Cláudio Afonso | LinkedIn | X
Brussels has turned down a proposal from China to set a minimum price of €30,000 ($32,900) for electric vehicles (EVs) made in China and sold in the European Union, according to a report from Reuters on Tuesday, citing sources familiar with the situation.
The proposal comes as part of ongoing negotiations between the European Union and China over the EU’s anti-subsidy investigation into Chinese-made EVs.
Unless a compromise is reached, tariffs could be imposed starting October 31, with the extra duties set to remain in place for five years.
The European Commission (EC) is investigating claims that Chinese manufacturers are benefiting from state subsidies, which allow them to offer EVs at lower prices than their European counterparts.
Last week, EU member states voted on proposed anti-subsidy tariffs against Chinese EVs. Germany and four other nations opposed the tariffs, 12 abstained, and 10 voted in favor.
Countries backing the tariffs included Italy, France, the Netherlands, Estonia, Lithuania, Latvia, Poland, Denmark, Bulgaria, and Ireland.
In rejecting the Chinese minimum price proposal, Brussels emphasized that the issue goes beyond pricing alone. The European Commission stressed the importance of addressing the subsidies that Chinese EV manufacturers receive, which distort competition within the EU market.
Details of the Chinese proposal surfaced as negotiations between both sides entered a critical phase.
If imposed, the new tariffs would add to the existing 10% duty on EV imports. Tesla would face an additional 7.8 percent tariff, while Chinese automakers BYD and Geely could see tariffs of 17 percent and 18.8 percent, respectively.
Companies that cooperated with the investigation would incur a 20.7 percent tariff, while non-cooperating firms, including SAIC Group, could be hit with a 35.3 percent duty.
Negotiations between China and the EU resumed earlier this week, with another round of talks scheduled for Monday.
On September 19, Chinese Commerce Minister Wang Wentao met with European Commission Executive Vice President Valdis Dombrovskis, agreeing to continue discussions to prevent the trade conflict from escalating.
Written by Cláudio Afonso | LinkedIn | X
