The European Commission has rejected proposals from Chinese electric vehicle (EV) makers to adjust their prices in an attempt to avoid steep tariffs. The tariffs follow a months-long investigation led by commission president Ursula von der Leyen, which found that China-made EVs are unfairly subsidized, undercutting European manufacturers. Despite offers from Chinese exporters, the commission stated that none met the requirements to address the harm caused by subsidies or could be properly enforced.
The decision raises concerns of an escalating trade dispute between the EU and China. The commission remains open to negotiations, with key talks between China’s commerce minister and the EU trade commissioner set for next week. EU member states are expected to vote on the tariffs by the end of October. Meanwhile, divisions within the EU have emerged, with countries like Spain reconsidering their stance, aligning with Germany’s opposition to the tariffs. The outcome could shape broader EU-China trade relations.
