Electric vehicle tariffs between EU and China to end! New hope amid trade tensions

A major deal is about to be reached between China and the European Union. The European Union (EU) is going to remove tariffs on Chinese electric vehicles (EVs) imported from China to Europe. Bernd Lange, chairman of the European Parliament's International Trade Committee, announced on Friday that the two sides are in the final stages of negotiations.

Bernd Lange indicated that both sides may soon reach a decision, which will waive off the tax on Chinese EVs. After this announcement, the concern of EV companies of Western countries has increased, because Chinese EVs are much cheaper than them and their prices will be reduced further due to the removal of tariffs.

Tariff Deal

According to Bernd Lange, the European Union and China are almost ready to eliminate tariffs on Chinese electric vehicles. He said that China is committed to selling EVs in Europe at reasonable prices and wants to avoid any unfair competition.

The move will help address concerns over subsidies given by China to its electric vehicle producers. The EU claims that these subsidies help Chinese companies sell EVs at lower prices in Europe, making it difficult for European carmakers to compete. The EU initially imposed tariffs on Chinese EVs to protect European companies from this competition.

Previous EU decision

In October 2023, the European Union imposed an additional duty of up to 35.3 percent on electric vehicles coming from China. The EU said that European manufacturers were unable to sell their vehicles due to Chinese subsidies. The European Commission feared that the increase in Chinese EV imports could harm local businesses and jobs in the European automotive sector.

China also did not take this decision lightly and tensions between the two countries have increased. Now it is hoped that new talks may improve relations between China and the EU.

There is a delicate balance in the trade relationship between the EU and China, with both sides trying to protect their industries while also avoiding a major trade war. If this agreement is reached, it could help ease these tensions and ensure fair competition in the electric vehicle market.