China and EU Reach Agreement on EV Import Dispute

China announced a deal with the European Union regarding exports of Chinese electric vehicles (EVs), with the EU set to issue guidelines on minimum pricing for Chinese auto exporters. While the agreement did not clarify the status of the EU’s 35.3% tariffs imposed in 2024 due to a previous investigation, it is aimed at fostering healthy trade relations and maintaining a rules-based international trade order. The EU’s tariffs were a response to concerns over Chinese automakers undermining local brands through government subsidies. As the U.S. maintains a 100% tariff on Chinese EVs, the EU seeks affordable imports to meet its greenhouse gas emission reduction targets by 2030.

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