EU and China Agree on Price Floors to Resolve EV Trade Dispute, Replacing Tariffs

• The EU and China have agreed on steps to resolve their dispute over Chinese-made electric vehicle imports.
• A 'guidance document' from the EU outlines instructions for Chinese EV manufacturers on making price offers, including minimum import prices.
• The EU had previously imposed tariffs of up to 35.3% on Chinese EV imports in 2024 following an anti-subsidy investigation.
• Minimum import prices must be set to remove the 'injurious effects of the subsidization,' with Chinese EV investments in the EU also considered.
• Analysts expect Chinese car brands to continue gaining market share in Europe, potentially reaching 10% by 2030.

Why It Matters: EU and China are moving towards price floors instead of tariffs to resolve their EV trade dispute.