European Union officials have dismissed claims that a resolution to ongoing trade tensions with China over electric vehicle (EV) tariffs is near. While discussions between the EU and Chinese representatives continue, the parties remain far from an agreement, sources close to the matter confirmed on Monday.
The trade friction centers on European tariffs imposed last month on Chinese-made EVs, with rates reaching as high as 45.3%. The EU’s investigation concluded that Chinese state subsidies had enabled artificially low prices for these vehicles, harming European manufacturers. One proposal under review involves introducing minimum price thresholds for imported Chinese EVs to balance market conditions. However, EU officials indicate that significant obstacles must be overcome before any consensus is reached.
Bernd Lange, who chairs the European Parliament’s trade committee, suggested in a Friday interview with a German broadcaster that an alternative to tariffs was close to being finalized. EU officials have since refuted this claim, emphasizing the ongoing challenges in negotiations with Beijing. Due to the sensitive nature of the talks, these officials requested anonymity.
China has been critical of the EU’s stance. The Chinese Chamber of Commerce to the EU previously described the tariff hike as a “protectionist” and “arbitrary” measure, signaling the potential for escalating tensions. The tariffs have not only divided opinions within Europe but also provoked sharp responses from Beijing, raising the stakes in the dispute.
With talks dragging on and no immediate resolution in sight, the rift highlights the complexities of balancing trade dynamics, economic competition, and regulatory measures in the fast-evolving EV market.