EU Not Close To Deal With China On EV Tariffs - Report

The European Union denied that it was close to reaching an agreement with China on electric vehicle (EV) tariffs, following an official's remarks last week that caused widespread speculation.

According to a report published yesterday by Reuters, which cited anonymous European sources, EU and Chinese authorities are debating alternatives to European tariffs on Chinese EVs, such as minimum sales prices for such vehicles in Europe, but no resolution is in the works.

On November 22, Bernd Lange, the head of the European Parliament's trade committee, told German network n-tv that Beijing and Brussels were almost done negotiating a deal on tariffs on Chinese electric vehicle imports into the EU.

According to European officials cited by Reuters in yesterday's report, Lange's claim was untrue since, even though negotiations were ongoing, there were still hurdles standing in the way of a settlement. The publication stated that the EU officials spoke on condition of anonymity due to the delicate nature of the talks with China.

On October 29, the EU concluded its anti-subsidy probe into Chinese imports of battery electric vehicles (BEVs), and the following day, a five-year policy of higher tariffs was implemented.

Different automakers are subject to varying tariff rates, which range from 35.3 percent for SAIC Motor to 7.8 percent for Tesla China. These levies are on top of the initial 10% tax.