Brussels: The European Commission revealed on Monday its consideration of establishing "minimum prices" that Chinese electric vehicles must not fall below, as a potential alternative to the tariffs currently imposed on these vehicles.
According to Kuwait News Agency, European Commission spokesperson Olof Gill stated that there have been "initial positive indications" in recent weeks regarding the possibility of setting price commitments for battery electric vehicles. This development follows the EU's imposition of tariffs exceeding 45 percent on Chinese-manufactured electric vehicles in October 2024. The decision came after the European Commission conducted an investigation into whether Chinese government support for its electric vehicle companies constituted "unfair subsidies" detrimental to the European automotive industry.
The proposed minimum prices would require Chinese exporters to commit to not selling their electric vehicles in the European market below a specified price threshold. This measure aims to protect the European automotive sector from being undercut by Chinese competitors.