EU and China Clash Over Electric Vehicle Pricing

Brussels has rejected a Chinese proposal to sell imported electric vehicles at a minimum price, aiming to stave off EU tariffs. The move is part of an ongoing trade dispute over EV subsidies, with tariffs set to take effect by the end of October unless a compromise is reached.

The European Union has turned down a Chinese proposal to set a minimum price for electric vehicles imported from China. This action is part of a larger anti-subsidy investigation aimed at resolving significant trade issues after a decade of tension between Beijing and Brussels.

Vehicles in China come at significantly lower costs compared to Europe and the United States, owing to local advantages such as raw material access and government subsidies. EU's refusal to accept proposed pricing limits, therefore raises tariffs and continues discussions for finding middle ground.

With impending tariffs on the horizon set for October 31, stakeholders on both sides are pressured for negotiations. China has started to impose retaliatory duties, complicating talks and making a solution crucial in the coming weeks.

(With inputs from agencies.)