EU and China reach trade agreement to avert EV tariff war
EU and Chinese officials agreed on trade concessions on Friday in Beijing after two days of crisis talks, avoiding a potential trade war over electric vehicles. The EU’s trade commissioner Maroš Šefčovič and China’s commerce secretary Wang Wentao reached a deal that addresses electric cars, rare earths, and tariffs. Šefčovič called the agreement a “crucial first step” towards rebalancing EU-China trade relations. Europe cited progress on hybrid vehicles, stronger assurances on the supply of critical raw materials, and continued engagement on market access issues in China. Hours before Šefčovič arrived, Beijing had rejected the EU’s demand for voluntary export restrictions on EVs. A joint statement announced an understanding on trade in hybrid vehicles in a WTO compliant manner, with further negotiations planned on reducing tariffs and minimum pricing deals that could allow Chinese EVs into the EU at lower duty rates.
