BRUSSELS/BEIJING (dpa-AFX) — Minimum prices instead of tariff surcharges: The EU is offering electric vehicle manufacturers producing in China a pathway to avoid the additional tariffs introduced in 2024. According to a new guideline, companies can commit to setting minimum prices for vehicles exported to the European Union, thereby sparing themselves the price surcharges. Additionally, commitments to invest within the EU or to cap exports would also be positively considered if such an offer is made.
Such proposals would be evaluated objectively and fairly by the European Commission, according to the EU Commission's new guidelines. Acceptance of these measures requires that they eliminate the harmful effects of subsidies and have an effect equivalent to that of tariffs.
Beijing Welcomes Guidelines
The progress made demonstrates that both sides are able and willing to resolve differences within the framework of World Trade Organization rules, the Beijing Ministry of Commerce stated. The Chinese Chamber of Commerce in Brussels also welcomed the EU document, describing it as a “soft landing” in the electric vehicle proceedings. The outcome addresses the concerns of businesses and creates a more stable and predictable environment for Chinese e-car manufacturers and their supply chains in Europe.
Additional Duties Aimed at Protecting European Industry
There have been long-standing talks between both sides about possible minimum import prices as an alternative to the EU's additional tariffs on electric cars imported from China.
The EU's additional duties were introduced in 2024 to safeguard the future of the auto industry within the EU. A prior investigation by the EU Commission found that manufacturers in China benefit from unfair subsidies, granting them a significant advantage in the European market. As a result, electric cars from China can typically be offered about 20 percent cheaper than models produced in the EU.
Countervailing Duties Also Affect German Companies
The level of additional tariffs varies by manufacturer, ranging from 7.8 percent to 35.3 percent. Foreign companies operating in China are also affected — including Tesla, BMW, and Mercedes-Benz. For example, Mercedes collaborates with Geely in China, and exports from Geely are subject to an 18.8 percent surcharge. Tesla faces a rate of 7.8 percent, while BMW is subject to 20.7 percent.
In retaliation, China imposed special tariffs on imports from the EU. These duties have been levied on products such as brandy, pork, and dairy products./aha/DP/men
