China Signals Flexibility as EU Opens Door for Individual EV Tariff Deals

BEIJING, Feb 12 (GeokHub) — China’s commerce authorities have softened their earlier position on electric vehicle trade talks with the European Union, signaling that Chinese automakers may now negotiate tariff arrangements independently with Brussels.

The shift follows a breakthrough involving a major European automotive brand, which secured a tariff exemption for one of its China-produced electric SUV models under a newly agreed pricing and sales framework. The development marks the first such approval since the European Union introduced additional duties on Chinese-made electric vehicles in 2024.

The European Commission, responsible for trade policy across the 27-member bloc, approved the arrangement earlier this week. Under the deal, the SUV model will avoid the additional tariff burden in exchange for adhering to a minimum price commitment and operating within a defined sales quota.

Previously, Beijing had discouraged separate negotiations between individual automakers and European authorities, preferring broader state-level discussions. However, officials now appear to support manufacturers pursuing structured price undertakings that comply with EU trade requirements.

A spokesperson for China’s commerce ministry stated that authorities hope more companies will reach similar agreements based on pricing commitments. The official added that both sides are maintaining dialogue and support constructive mechanisms that stabilize trade conditions in the electric vehicle sector.