EU and China Seek Price Deal to Ease Electric Vehicle Tariff Tensions

The European Union and China are in talks to set minimum prices on Chinese-made electric vehicles, aiming to replace last year's EU tariffs. This move follows discussions between EU officials and China's commerce ministry. The proposal seeks to resolve trade tensions affecting the automotive and spirit industries.

The European Union and China are actively exploring the option of establishing minimum prices for Chinese-made electric vehicles, as an alternative to the tariffs introduced by the EU last year. A spokesperson from the European Commission confirmed this development on Thursday.

According to a report by German newspaper Handelsblatt, negotiations are currently in progress. EU Trade Commissioner Maros Sefcovic and China's Commerce Minister Wang Wentao have engaged in talks within the past 24 hours, reaching a preliminary agreement to consider minimum pricing. China's commerce ministry also announced that discussions are set to commence immediately.

The EU initially raised tariffs on Chinese electric vehicles to levels as high as 45.3% in October. However, both parties are now contemplating lifting these tariffs in favor of binding minimum price commitments, known as price undertakings. This diplomatic shift aims to mitigate a broader trade spat influenced by U.S. trade policies and retaliatory actions by Beijing that have already impacted sectors such as the French cognac industry.

(With inputs from agencies.)