EU Rejects Chinese EV Price Offers Amid Tariff Tensions

The European Commission has rejected price undertakings from Chinese electric vehicle makers aimed at averting tariffs. The commission is conducting an anti-subsidy investigation and stressed the need for proposals compliant with WTO rules. Final tariffs of up to 35.3% are proposed, awaiting a member vote.

The European Commission announced Monday that Chinese electric vehicle (EV) makers failed to meet the deadline to make price commitments, leading to the rejection of all their offers. This comes amid an ongoing anti-subsidy investigation into Chinese-built EVs, where exporters were asked to respect minimum import prices to offset subsidies.

'The deadline for submitting such offers was the 24th of August, and there is no possibility beyond that deadline to offer new price undertakings under the rules of this type of investigation,' stated a Commission spokesperson. The EU executive remains open to solutions that comply with World Trade Organization rules and counteract identified subsidies.

EU members are scheduled to vote on proposed final tariffs of up to 35.3% on Sept. 25, potentially implemented by the end of October. Meanwhile, Chinese Commerce Minister Wang Wentao is in Europe this week to discuss the anti-subsidy case, starting in Italy, which has expressed support for the proposed tariffs.

(With inputs from agencies.)