EU is Considering Replacing EV Tariffs with Minimum Price

VW plan to move EV to China likely will propel a quicker decision on tariff replacement.

https://www.reuters.com/world/china/eu-reviews-removing-tariffs-vw-evs-built-china-2025-12-04/
EU reviews removing tariffs on VW EVs built in China

The European Commission has started a review of the anti-subsidy tariffs on Volkswagen’s (VOWG.DE), opens new tab electric vehicles built in China, which could lead to them being replaced with a minimum price undertaking, the EU official journal said on Thursday.

Volkswagen’s Anhui plant is a majority-owned joint venture with China’s JAC Automobile Group.

Under EU rules in place since October 2024, exports from the Volkswagen Anhui plant are subject to a 20.7% tariff, which has been described by the Seat/Cupra business as a serious threat to the brands.

https://www.reuters.com/business/autos-transportation/eu-china-start-talks-lifting-eu-tariffs-chinese-electric-vehicles-handelsblatt-2025-04-10/
The European Union and China have agreed to look into setting minimum prices of Chinese-made electric vehicles instead of tariffs imposed by the EU last year, a European Commission spokesperson said on Thursday.

Previous minimum price deals agreed by the EU have been for homogenous commodities, rather than complex products such as cars. The Commission has said it believes a single minimum price would not be adequate to counter injury caused by subsidies.

The EU increased tariffs on Chinese-built EVs to as much as 45.3% last October, but Brussels and Beijing have floated the idea of lifting the tariffs through possible commitments to minimum prices, known as price undertakings for imported cars.

German carmakers, which made a third of their sales last year in China, opposed the tariffs, worried about a trade conflict with the country’s second most important trading partner after the U.S.