China, EU seek resolution on EV tariffs as US imposes new trade duties

China and the European Union have agreed to restart negotiations on electric vehicle (EV) tariffs, the Chinese Ministry of Commerce announced on April 3. 

The decision comes just after US President Donald Trump imposed a fresh round of tariffs on Chinese and European goods, escalating global trade tensions.

According to the ministry, discussions will commence as soon as possible, aiming to create a favorable environment for Chinese and European businesses to collaborate and invest, Caliber.Az reports via Chinese media.

The renewed talks follow the Trump administration’s announcement of an additional 34% tariff on Chinese goods and a 20% duty on European Union exports. The US has also implemented a separate 25% tariff on global automotive imports, further intensifying trade disputes.

Trade relations between China and the EU have already been strained due to the European Commission's decision last year to impose higher tariffs on Chinese-made electric vehicles.

The EU set tariff rates of 17.0% for BYD, 18.8% for Geely, and 35.3% for SAIC, prompting legal action from the three Chinese automakers. In January, they challenged the tariffs at the Court of Justice of the European Union, arguing against what they deemed unfair trade barriers.

Efforts to resolve the dispute began in November 2024, when China and the EU held negotiations exploring the possibility of Beijing agreeing to minimum price commitments for Chinese EVs as an alternative to tariffs. With the latest agreement to restart talks, both sides now aim to find a resolution that balances trade interests while fostering continued investment and cooperation in the EV sector.

By Tamilla Hasanova