Tariffs of up to 35.3% on Chinese electric vehicles have emerged as the biggest trade flashpoint between Beijing and the EU.
The European Commission set out firm conditions under which China-based electric vehicle makers could replace EU tariffs with commitments to sell cars at minimum prices, while also signalling it would consider Chinese EV investments within the bloc. The move comes as tariffs of up to 35.3% on Chinese electric vehicles remain the single biggest source of trade tension between Beijing and Brussels.
The EU is seeking to shield its automotive industry from a surge of lower priced imports produced by manufacturers such as BYD, SAIC and Geely, while leaving the door open to a negotiated alternative to the levies. Talks between the two sides have intensified in recent months, with China strongly favouring minimum price commitments as a substitute for duties.
Following discussions with China’s commerce ministry, the Commission said it had issued written guidance detailing how such minimum price offers could be assessed. Any proposal must remove the harmful effects of state subsidies, have an impact equivalent to tariffs, be workable in practice and minimise the risk of cross compensation.
Crucially, the guidance rejects a one size fits all approach. Minimum prices would need to be set for each individual EV model and configuration, based on the sales price to the first independent customer in the EU. This marks a tougher stance than China had sought.
The Commission also warned that undertakings from firms selling other vehicle types, including hybrids, would be harder to accept due to cross compensation risks. Chinese hybrid imports into the EU rose fivefold in the first three quarters of 2025 compared with a year earlier.
