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Instead of tariffs they're looking at things like setting a minimum price. It's not clear whether a compromise will be found but it's interesting that they're negotiating.
BERLIN, April 10 (Reuters) - 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. German newspaper Handelsblatt reported earlier on Thursday that negotiations had begun.
EU trade commissioner Maros Sefcovic spoke with Chinese Commerce Minister Wang Wentao in the last 24 hours and both sides agreed to look into setting minimum prices, the EU spokesperson said. China's Commerce Ministry said in a statement that negotiations were set to start immediately. Sefcovic has previously said any minimum prices would need to be as effective and enforceable as the EU tariffs.
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.
The European Commission has said it is willing to continue negotiating an alternative to tariffs with China, which included tariffs of 17.0% for vehicles made by BYD (002594.SZ), opens new tab, 18.8% for Geely (GEELY.UL) and 35.3% for SAIC (600104.SS), opens new tab, on top of the EU's standard car import duty of 10%.
The discussions to potentially find a truce over the longstanding spat, which has also roiled French cognac makers as Beijing took retaliatory trade action, come as U.S. President Donald Trump has embarked on a trade war with some of the United States' closest trading partners, including the EU and China.
BERLIN, April 10 (Reuters) - 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. German newspaper Handelsblatt reported earlier on Thursday that negotiations had begun.
EU trade commissioner Maros Sefcovic spoke with Chinese Commerce Minister Wang Wentao in the last 24 hours and both sides agreed to look into setting minimum prices, the EU spokesperson said. China's Commerce Ministry said in a statement that negotiations were set to start immediately. Sefcovic has previously said any minimum prices would need to be as effective and enforceable as the EU tariffs.
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.
The European Commission has said it is willing to continue negotiating an alternative to tariffs with China, which included tariffs of 17.0% for vehicles made by BYD (002594.SZ), opens new tab, 18.8% for Geely (GEELY.UL) and 35.3% for SAIC (600104.SS), opens new tab, on top of the EU's standard car import duty of 10%.
The discussions to potentially find a truce over the longstanding spat, which has also roiled French cognac makers as Beijing took retaliatory trade action, come as U.S. President Donald Trump has embarked on a trade war with some of the United States' closest trading partners, including the EU and China.
