Philenews

EU Considers 'Minimum Price' for Chinese Electric Vehicles Instead of Tariffs

Published January 12, 2026, 13:18
EU Considers 'Minimum Price' for Chinese Electric Vehicles Instead of Tariffs

The European Union is considering imposing minimum prices on electric vehicles of Chinese origin, as an alternative to tariffs, in order to de-escalate trade tensions with China. The United States is putting pressure on Brussels to take a tougher stance towards Beijing. The plan involves establishing a minimum import price mechanism, which will take into account the state subsidies received by Chinese manufacturers. The EU believes that this mechanism will protect European automakers while allowing Chinese companies to maintain their profits from sales in Europe. The Chinese Ministry of Commerce welcomed the initiative, while the Chinese Chamber of Commerce in the EU expressed hope that both sides would remain committed to managing differences through dialogue. The EU had imposed tariffs on Chinese electric vehicles due to unfair state subsidies, prompting retaliation from Beijing. Despite the tariffs, Chinese-made cars continued to gain market share in Europe, with BYD and Leapmotor leading the way. The de-escalation effort comes at a time of strained relations between Europe and the United States, as well as amid US pressure for a tougher line against China.