The European Union (EU) and China are exploring the possibility of establishing minimum prices for Chinese-made electric vehicles (EV), reported Reuters citing a European Commission spokesperson.

This development was confirmed by a European Commission spokesperson, following a report by the German newspaper Handelsblatt that negotiations had commenced.

EU trade commissioner Maros Sefcovic and Chinese Commerce Minister Wang Wentao have agreed to consider the implementation of minimum pricing mechanisms.

The Chinese Commerce Ministry has indicated that these discussions are set to begin immediately.

Sefcovic has stressed that any such price controls would need to be as effective and enforceable as the existing EU tariffs.

The EU introduced tariffs of up to 45.3% on Chinese-built EVs last October, citing concerns over unfair subsidies. These included tariffs of 17.0% on vehicles from BYD, 18.8% for Geely, and 35.3% for SAIC, in addition to the EU’s standard 10% import duty.

These talks are part of wider trade discussions, which have gained urgency in light of US President Donald Trump's trade war with key partners, including the EU and China.

The German auto industry association VDA has welcomed the EU-China talks, criticising the US duties as a "mistake" and advocating for a negotiated resolution.

German carmakers, which count China as their second most important market after the US, have opposed the tariffs, fearing a trade conflict's repercussions.

Recently, Canada enacted countermeasures against the US’ “unjustified tariffs” on the country’s auto industry, effective from 9 April 2025.

Navigate the shifting tariff landscape with real-time data and market-leading analysis.

Request a free demo for GlobalData’s Strategic Intelligence here.