EU and China resume talks on minimum prices instead of EV tariffs
Representatives of the European Union and China are once again discussing alternatives to import tariffs on electric vehicles (EVs) manufactured in China, according to information obtained by the news agency Reuters from China’s Ministry of Commerce. The possibility of introducing minimum prices instead of punitive tariffs was already confirmed in mid-April 2025. However, these talks failed to yield results, and the proposed tariff alternative quickly faded from view.The situation is now regaining momentum, with talks set to continue next week, as Reuters reports. “China welcomes the EU’s renewed commitment to restarting price undertaking negotiations and appreciates its return to the path of resolving differences through dialogue,” said Ministry spokesperson He Yadong.China’s Ministry of Commerce has also urged the EU to avoid independent discussions with manufacturers. This statement is clearly directed at the review of anti-subsidy tariffs on Volkswagen’s China-built electric vehicles initiated by the EU Commission last week—with the prospect of replacing the tariffs with an individual minimum price commitment. The focus is primarily on the Cupra Tavascan, which is manufactured by VW Anhui in China for global markets.Since the Tavascan is built in China, it is subject to the special tariffs imposed by the EU Commission in October 2024. For VW Anhui, this means an additional 20.7% surcharge on top of the 10% base tariff—amounting to a total of 30.7%. A Seat spokesperson confirmed that the company’s proposal includes ‘an annual import quota and a minimum import price,’ though no specific figures were provided.From an external perspective, it remains difficult to assess how likely an agreement between the EU and China is by next week. So far, the EU has agreed to minimum price arrangements for individual raw materials but not for complex products like entire vehicles, as Reuters notes. The Commission had previously stated that minimum prices were insufficient to offset the damage caused by subsidies. Meanwhile, China continues to insist that its manufacturers are ‘simply more competitive’ than their European counterparts.reuters.comThis article was first published by Sebastian Schaal for electrive’s German edition.
