The European Union (EU) and China are reportedly discussing the introduction of a minimum price system for Chinese electric vehicles (EVs). Reuters, citing Germany’s Handelsblatt, reported that negotiations between the two sides have already begun.
A spokesperson for the European Commission confirmed that EU Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao have agreed to explore the possibility of introducing a mechanism to set minimum prices for Chinese EVs. China’s Ministry of Commerce also stated that discussions on this matter would begin immediately. Commissioner Šefčovič emphasized that such minimum pricing mechanisms must be as effective and enforceable as the EU’s existing tariffs.
Since October 2023, the EU has imposed tariffs of up to 45.3% on Chinese electric vehicles in response to what it considers unfair subsidies. The tariffs vary by manufacturer: BYD faces a 17.0% tariff, Geely 18.8%, and SAIC 35.3%. These are in addition to the existing general import tariff of 10%.
The discussion on implementing a minimum price system is seen as an urgent bilateral trade negotiation prompted by the intensifying protectionist measures led by U.S. President Donald Trump. Both the EU and China are increasingly recognizing the need for a coordinated response to U.S.-imposed auto tariffs.
The German Association of the Automotive Industry (VDA) welcomed the EU-China talks and criticized the high U.S. tariffs as a mistake. Germany’s automotive industry, which relies heavily on both the U.S. and Chinese markets, has expressed concern over potential damage from prolonged trade conflicts.
Meanwhile, Canada has also escalated tensions within North America by enforcing retaliatory tariffs against the United States starting April 9, 2025, in response to what it deems unjust trade measures.
