EU and China: Minimum price instead of tariffs for electric cars

Trade EU and China: Minimum Price Instead of Tariffs for Electric Cars

2026-01-13 From Thomas Günnel | Translated by AI 1 min Reading Time

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The European Commission offers China an alternative to tariffs on electric cars: minimum prices. This is intended to simplify trade.

Chinese manufacturers could set a minimum price for their electric cars in the EU in the future—and thus avoid tariffs.(Image: Xpeng) — Chinese manufacturers could set a minimum price for their electric cars in the EU in the future—and thus avoid tariffs.
(Image: Xpeng)

The EU Commission has established guidelines for the prices of Chinese electric cars. These are directed at Chinese exporters of models currently subject to countervailing tariffs. The key point is a minimum import price, which applies to each model and configuration. Relevant are the sales prices when selling to the first independent customer in the EU.

The offer must meet four criteria: it must neutralize the harmful subsidy effects, be practical, avoid cross-subsidization, and align with EU policies. It is important to the EU Commission that the processes are monitorable. This means companies must maintain transparent accounting and provide the necessary documents.

The EU Commission offers the complete guidelines with all requirements and options for download: "Guidance document on submission of price undertaking offers"

Volkswagen Warns of Tariff Impacts

At the end of 2025, Volkswagen proposed "an annual import quota and a minimum price mechanism" to the EU. This was reported by the news agency Reuters. According to the report, VW's subsidiary Seat/Cupra had warned that tariffs would seriously threaten its business. The automaker manufactures the fully electric Tavascan at its Chinese plant in Anhui.

Currently, electric cars exported from China to Europe are subject to tariffs of up to approximately 35 percent. According to the news agency, the Chinese Ministry of Commerce "broadly welcomes" the proposed guidelines.

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