The European Commission has published guidance setting out how Chinese electric-vehicle makers can replace EU tariffs with commitments to sell at minimum prices. The move is aimed at resolving a long-running trade dispute over subsidised EVs from China without relying solely on punitive duties.
Since 2024, the EU has imposed additional tariffs on Chinese-built EVs on top of the standard 10% import duty, with rates varying by manufacturer from 7.8% to 35.3%. Under the new mechanism, qualifying producers could instead offer a minimum import price — and in some cases sales quotas — that the Commission says must remove the distorting effect of subsidies and be equivalent in impact to the duties.
The shift follows months of talks between Brussels and Beijing, and China’s commerce ministry has broadly welcomed the guidance. Volkswagen Anhui became the first automaker to secure an exemption, with its China-built Cupra Tavascan SUV cleared of a 20.7% countervailing duty in exchange for an agreed minimum price and quota, though the 10% base rate still applies.
EU member states must approve individual arrangements under comitology rules, and the Commission has said it will weigh favourably any pledges to invest in European manufacturing. For buyers, the outcome could steady prices on Chinese-branded EVs such as those from BYD, MG and Tesla’s China-built models sold in Europe.