EU Considers Price Floors for Chinese EVs

Sunita Somvanshi

EU and China begin high stakes talks on setting minimum prices for Chinese electric vehicles instead of continuing with hefty tariffs.

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The tariff saga started when EU officials slapped duties up to 45.3% on Chinese EVs last October, citing unfair government subsidies.

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Different Chinese automakers face varied tariff levels – BYD at 17%, Geely at 18.8%, and SAIC at a steeper 35.3%, on top of standard 10% import fees.

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Setting price floors for complex products like EVs poses unique challenges as the EU has only used this approach for basic materials before.

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German automakers, who sell one-third of their vehicles in China, breathed a sigh of relief as they've been calling the tariffs a "mistake" from day one.

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China has already fired back at Europe by targeting French cognac with tariffs, hurting brands like Hennessey and Remy Cointreau.

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Chinese electric vehicles captured nearly 20% of Europe's EV market in 2024, with analysts predicting this share could jump to 25% this year.

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Critical details remain vague, including what price levels would be set, enforcement mechanisms, and potential loopholes companies might exploit.

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The outcome will directly impact European consumers' EV prices, manufacturers' strategies, and the continent's broader transition to electric mobility.

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